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Credit Line Increase and new credit card?


maverick9
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6 hours ago, maverick9 said:

What I have a hard time comprehending is seeing people that make 35k get 25k limits. I now have perfect credit for several years, pushing 500k in income which I can send documentation on, I have no debt, and your telling me there going to restrict me to a 3x limit of only 10-30k?

 

Is this a joke?

Sorry to disappoint you, but in addition to applying for a new starting credit limit approved at $25K, existing cards, any card requesting a credit limit increase will require a maximum increase of $8K or 3X credit limit if you establish a credit limit A low-limit card with only $500. It peaked at $4,000 2 years ago when the Covid-19 scare hit fans, and it went back to $8,000 last year.

 

But nothing is set in stone, YMMV. NFCU's current policy is similar to what I described above. These are options to stick to the course policy unless something changes.

 

Also, based on your credit history, your current credit profile is fairly weak, thin, and fairly new. These are calculated upon approval of a suitable starting amount for the line of credit. 

 

High income isn't a panacea for a high-limit card, it's your strong credit history, with a large number of accounts reporting positive, and a decent credit limit overall.

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24 minutes ago, MP80 said:

Sorry to disappoint you, but in addition to applying for a new starting credit limit approved at $25K, existing cards, any card requesting a credit limit increase will require a maximum increase of $8K or 3X credit limit if you establish a credit limit A low-limit card with only $500. It peaked at $4,000 2 years ago when the Covid-19 scare hit fans, and it went back to $8,000 last year.

 

But nothing is set in stone, YMMV. NFCU's current policy is similar to what I described above. These are options to stick to the course policy unless something changes.

 

Also, based on your credit history, your current credit profile is fairly weak, thin, and fairly new. These are calculated upon approval of a suitable starting amount for the line of credit. 

 

High income isn't a panacea for a high-limit card, it's your strong credit history, with a large number of accounts reporting positive, and a decent credit limit overall.

My oldest accounts are 23 years old showing as "excellent" across all the reports. 

 

I have had prestine credit these last 4 years. My Fico 8 scores should be around 750 on this new billing cycle. 

 

So we shall see what happens when I request CLI's across all new cards. 

 

Do you think I should ditch this Cap 1 card as Centex stated? 

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3 hours ago, maverick9 said:

I understand "higher limits beget higher limits" but it's a catch 22. If no one wants to up my limits because they see my other credit cards at a certain limit, then how in the world will one ever decide to go up? 


You do what normal people do and go up little by little.  It's more than delusional to believe you are going to take a card from $5k to $50k in a short period of time.  
 

There are also other factors.  There are card issuers that don't want to raise limits unless they see you have shown a substantial need for a higher limit.  I have a Chase card at about $75k and they never give me a CLI.  When I call underwriting they snicker when they see my average use is $250 a month to pay my cell phone bill.  
 

There a dozen factors at least that go into a decision to raise your limit.  One of them is current economic trends.  With a recession reported as looming, I seriously doubt you will even double your limits soon.

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1 hour ago, maverick9 said:

My oldest accounts are 23 years old showing as "excellent" across all the reports. 

 

I have had prestine credit these last 4 years. My Fico 8 scores should be around 750 on this new billing cycle. 

 

So we shall see what happens when I request CLI's across all new cards. 

 

Do you think I should ditch this Cap 1 card as Centex stated? 


If you have "excellent" accounts that are 23 years old, why the fook is your FICO *ONLY* 750?  And how the hell does someone with "excellent" 23-year-old accounts end up with a $500 CapOne?????  Something smells funny and if I can smell it so can any of your creditors when they look at your CLI request.  
 

A 750 FICO means shiat.  People with an 850 get declined every day and people with a 650 get approved every day.  Not one single credit card company's gives a shiat about your FICO when you request a CLI.  All they look at is the raw data on your credit reports (via hard or soft INQ), the information you provide on your CLI request and any data they have already in their files on you.  9 times out of 10 the entire process is automated.   
 

I don't think cancelling your CapOne is useful.  Nobody will look at that negatively.  In fact, they probably won't look at it at all.  CLI decisions are largely automated.  Nobody is going to look and find a tiny CapOne suspicious.  If the card is bucketed by CapOne and will not grow, keep it and apply for another CapOne card that will not be bucketed.  
 

For decades US Bank would never approve any of my applications and one day I decided I break that streak.  I applied for a $500 secured card and it was approved.  After a year I had it unsecured.  Then I requested a CLI and got $5k.  For me $5k is freakishly low.  I applied for a new U.S. Bank card and got $25k.  All during the time I had that crappy $500 secured card no other lender ever held that against me when I applied for new cards or requested CLIs. 

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2 hours ago, maverick9 said:

My oldest accounts are 23 years old showing as "excellent" across all the reports. 

 

I have had prestine credit these last 4 years. My Fico 8 scores should be around 750 on this new billing cycle. 

 

So we shall see what happens when I request CLI's across all new cards. 

 

Do you think I should ditch this Cap 1 card as Centex stated? 

According to your original post on this thread, you depict yourself as someone new to credit and carrying a substantial amount of debt and recently able to trim it down in size considerably.

 

If you have 23 years of accumulated credit history, why do you have such a low credit limit while reporting so few credit card accounts on average?

 

Also, if you're making $500,000 a year, why not get a credit card with a $25,000 limit in your loan collateral account? This strategy will raise your limit on unsecured credit later on!

 

Your Capital One is a bucket credit card attached to securitization, and it may remain a low-limit card as it is now. Considering closing your Capital One account is not a better option given that you merely have 5 to 6 credit accounts.

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14 hours ago, maverick9 said:

My oldest accounts are 23 years old showing as "excellent" across all the reports. 

 

I have had prestine credit these last 4 years. My Fico 8 scores should be around 750 on this new billing cycle. 

 

So we shall see what happens when I request CLI's across all new cards. 

 

Do you think I should ditch this Cap 1 card as Centex stated? 

23 years and an anorexic file is a huge red flag...far bigger than the ones PotO sees while in China. 

 

Also, do not forget that some lenders keep an internal blacklist...they may let you in the door, but it does not mean they are obligated to forget the past even if it is off of YOUR report.  If it is in THEIR record, you are, as PotO is fond of saying...FOOKED.  Pristine credit for four years on a 23 year history means there are problems or gaps of some sort in the past. 

 

Do not fall into the trap of believing score is everything.  As noted, there are lenders who have denied applications where the score was pushing or even at 850 and others, like AXP, have long been noted for approvals of people who were in the low 600's.  Score is just one piece of the algorithms in the automated underwriting, and I do not believe it is a huge piece of the equation. 

 

The Crap One card is NOT going to grow with you.  They have good buckets and bad buckets...it would appear you are NOT in the good bucket.  Proceed accordingly.

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Posted (edited)
Quote

You do what normal people do and go up little by little.  It's more than delusional to believe you are going to take a card from $5k to $50k in a short period of time.

Thank you for letting me know this. I really didn't know how it worked. So it's a gradual increase of limts over time. Got it.

 

Quote

There are also other factors.  There are card issuers that don't want to raise limits unless they see you have shown a substantial need for a higher limit.  I have a Chase card at about $75k and they never give me a CLI.  When I call underwriting they snicker when they see my average use is $250 a month to pay my cell phone bill.

Makes total sense now.  

Quote

There a dozen factors at least that go into a decision to raise your limit.  One of them is current economic trends.  With a recession reported as looming, I seriously doubt you will even double your limits soon.

I could see the current climate playing a actor in this. 

Edited by maverick9
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13 hours ago, PotO said:

If you have "excellent" accounts that are 23 years old, why the fook is your FICO *ONLY* 750?  And how the hell does someone with "excellent" 23-year-old accounts end up with a $500 CapOne?????  Something smells funny and if I can smell it so can any of your creditors when they look at your CLI request.  

Nothing funny here......I'll explain......My accounts that are 23 years old are closed. Just logged into Experian and it says "Oldest account 23 yrs 2 mos Exceptionl Credit History Length". 

 

I had perfect credit my whole life but in 2015, I let all my credit go delinquent because I lost my business and my wife got laid off. Fortunately, I successfully avoided BK and settled with most of my creditors as it was the ethical thing to do when I did recover from our tragedy in 2015. 

 

So my FICO only being at 750 is because of the above and my CAP1 card at $600 is because I just opened my first card 2 years ago. Make sense now?

 

Quote

I don't think cancelling your CapOne is useful.  Nobody will look at that negatively.  In fact, they probably won't look at it at all.  CLI decisions are largely automated.  Nobody is going to look and find a tiny CapOne suspicious.  If the card is bucketed by CapOne and will not grow, keep it and apply for another CapOne card that will not be bucketed.

I see there is a debate about this subject about CapOne. I would agree with you and believe your experience. If I apply for another CapOne card, should I close this exisitng one or will it convert. 

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13 hours ago, MP80 said:

According to your original post on this thread, you depict yourself as someone new to credit and carrying a substantial amount of debt and recently able to trim it down in size considerably.

 

If you have 23 years of accumulated credit history, why do you have such a low credit limit while reporting so few credit card accounts on average?

I somewhat am new to credit. As I just mentioned to @PotO........."I had perfect credit my whole life but in 2015, I let all my credit go delinquent because I lost my business and my wife got laid off. Fortunately, I successfully avoided BK and settled with most of my creditors as it was the ethical thing to do when I did recover from our tragedy in 2015. 

Quote

Also, if you're making $500,000 a year, why not get a credit card with a $25,000 limit in your loan collateral account? This strategy will raise your limit on unsecured credit later on!

Loan collateral account? What is this? Please explain. 

Quote

Your Capital One is a bucket credit card attached to securitization, and it may remain a low-limit card as it is now. Considering closing your Capital One account is not a better option given that you merely have 5 to 6 credit accounts.

It is no longer secured. It graduated to unsecured but is stuck there. Is this still bucketed? 

 

I have 5 credit cards which one I'm an authorized user on (Wawa). 

 

I have a 45k HELOC

 

I have one car lease that has 15k remaining balance.

 

All these accounts are current. 

 

So I will keep the Cap1

 

 

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46 minutes ago, centex said:

23 years and an anorexic file is a huge red flag...far bigger than the ones PotO sees while in China. 

 

Also, do not forget that some lenders keep an internal blacklist...they may let you in the door, but it does not mean they are obligated to forget the past even if it is off of YOUR report.  If it is in THEIR record, you are, as PotO is fond of saying...FOOKED.  Pristine credit for four years on a 23 year history means there are problems or gaps of some sort in the past. 

As I just mentioned to @PotO........."I had perfect credit my whole life but in 2015, I let all my credit go delinquent because I lost my business and my wife got laid off. Fortunately, I successfully avoided BK and settled with most of my creditors as it was the ethical thing to do when I did recover from our tragedy in 2015. 

 

So I had a beautiful file for 16-17 years prior to 2015, lost it all, avoided BK, reestablished my profile 2 years ago. Hence my file.....

 

Quote

Do not fall into the trap of believing score is everything.  As noted, there are lenders who have denied applications where the score was pushing or even at 850 and others, like AXP, have long been noted for approvals of people who were in the low 600's.  Score is just one piece of the algorithms in the automated underwriting, and I do not believe it is a huge piece of the equation. 

I agree with you that there are several factors that dictate limits and credit. Though I have had my financial debacle in 2015, my history shows I had high limits in the passed, settled with most of my creditors, avoided BK, reestablished perfect credit for 2 years, have tier 1 cards now, very strong income, maxed out my cards, paid them all off, use them religiously daily, and showed I'm trustworthy. 

 

I know more time, usage, and resposibilty will only help moving forward. 

 

Quote

The Crap One card is NOT going to grow with you.  They have good buckets and bad buckets...it would appear you are NOT in the good bucket.  Proceed accordingly.

Thank you. 

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To give more insight, here is the post of my successful journey where I was losing hope but made a committment to learning credit from this wonderful CB forum. I can't thank you all enough. 

 

 

My journal..........

 

+65 (7/28/21) - 477 days from the start date @ 735 (+173 points from start)
+1 (6/18/21) - 426 days from start date @ 681
+16 (5/26/21) - 414 days from start date @ 680
+4 (10/19/20) - 184 days from start date @ 664
+4 (10/1/20) - 166 days from start date @ 660
-16 (9/13/20) - 160 days from start date (AT&T collection hit) @ 656
+13 (9/8/20) - 154 days from start date @ 672
+15 (9/1/20) - 147 days from start date
+2 (8/19/20) - 134 days from start date
+10 (8-8-20) - 126 days from start date
-6 (7-21-20)
+17 (7/2/20)
+3 (6/20/20)
+1 (6/5/20)
-1 (5/16/20)
+8 (5/8/20)
+29 (5/3/20)
+19 (4/18/20)
START DATE = 4/7/20 and score was 562

 

 

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44 minutes ago, maverick9 said:

It is no longer secured. It graduated to unsecured but is stuck there. Is this still bucketed? 

 

I have 5 credit cards which one I'm an authorized user on (Wawa). 

 

I have a 45k HELOC

 

I have one car lease that has 15k remaining balance.

The AU accounts may not be providing the same level of aid that they would have a decade or so back...there are multiple accounts that suggest that the AU is simply not a factor in the decisioning process.  Whether that is accurate or not, don't know...I am not an underwriter.  But when a report is filled with active accounts that have no real credit beyond AU accounts, it is the same problem as a college student faces when trying to get real credit. 

 

How old is the HELOC and how much of the $45K is in play?  How long has the lease been in effect? 

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56 minutes ago, maverick9 said:

Nothing funny here......I'll explain......My accounts that are 23 years old are closed. Just logged into Experian and it says "Oldest account 23 yrs 2 mos Exceptionl Credit History Length". 

 

I had perfect credit my whole life but in 2015, I let all my credit go delinquent because I lost my business and my wife got laid off. Fortunately, I successfully avoided BK and settled with most of my creditors as it was the ethical thing to do when I did recover from our tragedy in 2015. 

 

So my FICO only being at 750 is because of the above and my CAP1 card at $600 is because I just opened my first card 2 years ago. Make sense now?

 

I see there is a debate about this subject about CapOne. I would agree with you and believe your experience. If I apply for another CapOne card, should I close this exisitng one or will it convert. 

 

Regarding those closed accounts, do they show any indications at all of the credit issues you previously experienced?  Anything like comments such as "closed by lender" or "settled" or late payments?

 

I would take it easy.  Right now your open accounts are relatively young and you may be considered as having a sort of thin file.  Go for the CLIs and then see how you stand with success and with INQs.  Then decide about applying for new cards.  Check out some decent pre-qual sites such as, for example, FNBO.

 

I would keep the CapOne card for now.  It used to be secured, right?  Maybe you will not be stuck in the subprime bucket with CapOne and the card will grow.  If after some time it does not, then apply for a new CapOne card and if that card is not bucketed subprime then you can close the other one.  

Edited by PotO
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5 minutes ago, centex said:

The AU accounts may not be providing the same level of aid that they would have a decade or so back...there are multiple accounts that suggest that the AU is simply not a factor in the decisioning process.  Whether that is accurate or not, don't know...I am not an underwriter.  But when a report is filled with active accounts that have no real credit beyond AU accounts, it is the same problem as a college student faces when trying to get real credit. 

 

How old is the HELOC and how much of the $45K is in play?  How long has the lease been in effect? 

 

Very true.  AU cards not are the magic ticket they once used to be.  Many credit card companies overlook them completely.

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31 minutes ago, shifter said:

There are ways to grow limits more quickly if you have a good profile. A pry bar is the key. 

 

Pry bars are crucial!  I'm glad you mentioned that.

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37 minutes ago, shifter said:

There are ways to grow limits more quickly if you have a good profile. A pry bar is the key. 

Awesome! Pry bar is when one creditor will be the first to give you a high limit? If so, I felt it was Amex because they gave me a $9,500 limit right out the door even after I had settled a 2k amex card prior to them giving me this existing one and given this $9,500 limit. 

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15 minutes ago, centex said:

The AU accounts may not be providing the same level of aid that they would have a decade or so back...there are multiple accounts that suggest that the AU is simply not a factor in the decisioning process.  Whether that is accurate or not, don't know...I am not an underwriter.  But when a report is filled with active accounts that have no real credit beyond AU accounts, it is the same problem as a college student faces when trying to get real credit. 

 

How old is the HELOC and how much of the $45K is in play?  How long has the lease been in effect? 

I only have the Wawa gas card as an AU because it helps with .05/gallon off gas otherwise I'd let it go. It's not so much to help creditwise. 

 

The Heloc? Opened 9/05 so 17 years old.  75k credit limit that I can no longer borrow against as it is in the repayment phase, I owe 45k. I am considering paying this off or least paying half of it off.

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Posted (edited)
29 minutes ago, PotO said:


Regarding those closed accounts, do they show any indications at all of the credit issues you previously experienced?  Anything like comments such as "closed by lender" or "settled" or late payments?

Yes. "Legally paid in full for less than the full balance". Some are charged off but all were charged off on or about 2/2016 so in 2/23, shouldn't they fall off being that they are 7 years old then? 

 

Quote

I would take it easy.  Right now your open accounts are relatively young and you may be considered as having a sort of thin file.  Go for the CLIs and then see how you stand with success and with INQs.  Then decide about applying for new cards.  Check out some decent pre-qual sites such as, for example, FNBO.

Yes. I will heed your advice. Given my perfect history that was tainted in 2015 but no BK and successfully recoverd, I'm not sure where I stand with these creditors and my credit file. 

 

Quote

I would keep the CapOne card for now.  It used to be secured, right?  Maybe you will not be stuck in the subprime bucket with CapOne and the card will grow.  If after some time it does not, then apply for a new CapOne card and if that card is not bucketed subprime then you can close the other one. 

Yes it used to be secured but no longer. 7/31/21 upgraded to Quicksilver and asked for a CLI but got declined. 12/7/20 automatic increase from $300 to $600. 

Edited by maverick9
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2 minutes ago, maverick9 said:

I only have the Wawa gas card as an AU because it helps with .05/gallon off gas otherwise I'd let it go. It's not so much to help creditwise. 

 

The Heloc? Opened 9/05 so 17 years old.  75k credit limit that I can no longer borrow against as it is in the repayment phase, I owe 45k. I am considering paying this off or least paying half of it off.

If you can no longer borrow against it, what notations appear on the paper reports?  That would seem to be another potential red flag...setting aside the potential utilization issue $45K outstanding on $75K creates...

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Posted (edited)
17 minutes ago, centex said:

If you can no longer borrow against it, what notations appear on the paper reports?  That would seem to be another potential red flag...

2017 and 2020 paper reports state, "CREDIT LINE NO LONGER AVAILABLE - IN REPAYMENT PHASE". I can no longer borrower against as I could only do so the first 10 years since opening it.

 

Quote

setting aside the potential utilization issue $45K outstanding on $75K creates...

 

Report is showing 60% credit usage. So are you suggesting I pay it down? If so, to what? 

Edited by maverick9
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I wouldn't really worry too much about the HELOC. The util hurts a bit but would be helped if you can get it under $44,925.

 

$9500 is a decent pry bar where you are. The next goal is to get a bigger pry bar, like a $25k card from one of the generous CUs beloved around here. 

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6 hours ago, maverick9 said:
Quote

Your Capital One is a bucket credit card attached to securitization, and it may remain a low-limit card as it is now.

It is no longer secured. It graduated to unsecured but is stuck there. Is this still bucketed? 

You completely misunderstand what Securitization means for Capital One bucketed credit cards.

 

Your Capital One bucket credit card is an Asset-Backed Securities (ABS) credit card, which is why your subprime card probably never grows.

 

Credit card debt, the "money" you borrow when you make a charge, does not just come out of thin air.  The creditor who is giving you a credit limit needs that money from somewhere to pay the companies you buy from.  The credit card industry in the US is well over $1 trillion in the amount owed, but credit limits are much higher than this.  That means that the creditors need to be able to make payments of over $1 trillion to vendors.  It's a staggering amount.

 

The way that credit card companies can pay out your purchases is by using their own cash assets, or by enticing investors to put money in.  The latter is how they make an ABS or an Asset-Backed Security.

Edited by MP80
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6 hours ago, maverick9 said:

Loan collateral account? What is this? Please explain. 

Big banks would accept an application for a secured credit card with a credit line of $25K by pledging a $25K deposit to connect the collateral.

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2 hours ago, shifter said:

I wouldn't really worry too much about the HELOC. The util hurts a bit but would be helped if you can get it under $44,925.

August 1 payment will put me below $44,925. Perfect timing! I presume your telling me this so I am under 60% which helps util?

 

Quote

$9500 is a decent pry bar where you are.

I agree but I should still request a 3x CLI on this Amex, right? 

 

Quote

The next goal is to get a bigger pry bar, like a $25k card from one of the generous CUs beloved around here. 

 

Should I go for a 2nd NFCU card for the 25k card or another CU? If another CU, which ones are beloved here? 

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