CLI vs Adding a 2nd card

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Travis
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CLI vs Adding a 2nd card

Postby Travis » Fri Apr 21, 2017 10:19 am

Have 7 on time paid in full remittances, thinking about asking Elan Visa for a credit limit increase. Would it result in a hard inquiry? Can I take their word, if they claim it will not be a hard inquiry? I see that they made a soft inquiry in March, hoping my next statement shows a CLI.

Discover It has sent some offers, U.S. based CS is appealing, I haven't had to call Elan CS yet, so I'm not sure of their setup.

Any recommendations of issuers with U.S. based CS would be appreciated. I'm not really into the rewards yet (don't travel), but would like my next card to be one that would be useful long-term.
Elan: Visa $1,500

TransUnion 722 -6


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CarefulBuilder14
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Re: CLI vs Adding a 2nd card

Postby CarefulBuilder14 » Fri Apr 21, 2017 10:55 am

Travis wrote:Have 7 on time paid in full remittances, thinking about asking Elan Visa for a credit limit increase. Would it result in a hard inquiry? Can I take their word, if they claim it will not be a hard inquiry? I see that they made a soft inquiry in March, hoping my next statement shows a CLI.

Discover It has sent some offers, U.S. based CS is appealing, I haven't had to call Elan CS yet, so I'm not sure of their setup.

Any recommendations of issuers with U.S. based CS would be appreciated. I'm not really into the rewards yet (don't travel), but would like my next card to be one that would be useful long-term.

For someone who values good customer service and favors cash back over travel rewards, I think Discover would be an excellent long-term fit. Elan isn't known for these.

I'm not sure of their HP/SP CLI practices, but I think they go with a HP...not that one more HP would be so bad.

There is a chance Discover will offer you a secured card instead of an unsecured one. It could unsecure in as little as 7 months. If you can afford to make an interest-free loan for several months, that might be worth accepting.

They aren't terribly discriminating in their marketing, so the mail offers don't mean much.

Some people are able to get an Amazon gift card in addition to the first year's double cash back. Not sure of the details there.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

Travis
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Re: CLI vs Adding a 2nd card

Postby Travis » Sat Apr 22, 2017 10:52 am

CarefulBuilder14 wrote:
Travis wrote:Have 7 on time paid in full remittances, thinking about asking Elan Visa for a credit limit increase. Would it result in a hard inquiry? Can I take their word, if they claim it will not be a hard inquiry? I see that they made a soft inquiry in March, hoping my next statement shows a CLI.

Discover It has sent some offers, U.S. based CS is appealing, I haven't had to call Elan CS yet, so I'm not sure of their setup.

Any recommendations of issuers with U.S. based CS would be appreciated. I'm not really into the rewards yet (don't travel), but would like my next card to be one that would be useful long-term.

For someone who values good customer service and favors cash back over travel rewards, I think Discover would be an excellent long-term fit. Elan isn't known for these.

I'm not sure of their HP/SP CLI practices, but I think they go with a HP...not that one more HP would be so bad.

There is a chance Discover will offer you a secured card instead of an unsecured one. It could unsecure in as little as 7 months. If you can afford to make an interest-free loan for several months, that might be worth accepting.

They aren't terribly discriminating in their marketing, so the mail offers don't mean much.

Some people are able to get an Amazon gift card in addition to the first year's double cash back. Not sure of the details there.


Thanks for the input. I might ask for a CLI, and do some reading over the next week, to help narrow down issuers.

Thought I read good things about AmEx Blue Cash, don't recall. Need to start reading here again, expand my knowledge base.
Elan: Visa $1,500

TransUnion 722 -6

takeshi
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Re: CLI vs Adding a 2nd card

Postby takeshi » Tue May 02, 2017 2:16 pm

Travis wrote:I'm not really into the rewards yet (don't travel)

You don't have to travel. You mentioned Discover and AmEx in a later post. Both are cash back rewards cards.

Travis wrote:but would like my next card to be one that would be useful long-term.

What's "useful" to you? If you want recommendations you need to clearly define the parameters for us to give you recommendations. Any other considerations than US customer service? How did you select Discover it and the Blue Cash Everyday? I'm assuming you mean the Everyday though there are 2 other Blue Cash cards.

Travis
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Re: CLI vs Adding a 2nd card

Postby Travis » Fri May 05, 2017 9:49 am

I don't use credit often enough to have clearly defined parameters. The novelty of using plastic faded, and I've been using cash more often. My main objective is credit building, as is the title of this sub-forum.

But I definitely want to call a customer service dept that's capable, and not going to rely on a script. Most likely wind up with a Visa, M/C, and AmEx, 3 is enough.
Elan: Visa $1,500

TransUnion 722 -6

cltphotog
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Re: CLI vs Adding a 2nd card

Postby cltphotog » Sat Jun 03, 2017 11:47 am

Travis wrote:I don't use credit often enough to have clearly defined parameters. The novelty of using plastic faded, and I've been using cash more often. My main objective is credit building, as is the title of this sub-forum.

But I definitely want to call a customer service dept that's capable, and not going to rely on a script. Most likely wind up with a Visa, M/C, and AmEx, 3 is enough.


By using cash you're costing yourself lots of benefits and potential CLI along with better CC offers. Your goal is to build credit and increase your available credit so credit utilization is always low.
American Express Hilton Surpass
Chase Sapphire Preferred
Discover IT
Capitol One Quicksilver

Travis
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Re: CLI vs Adding a 2nd card

Postby Travis » Tue Jun 06, 2017 6:44 am

cltphotog wrote:
Travis wrote:I don't use credit often enough to have clearly defined parameters. The novelty of using plastic faded, and I've been using cash more often. My main objective is credit building, as is the title of this sub-forum.

But I definitely want to call a customer service dept that's capable, and not going to rely on a script. Most likely wind up with a Visa, M/C, and AmEx, 3 is enough.


By using cash you're costing yourself lots of benefits and potential CLI along with better CC offers. Your goal is to build credit and increase your available credit so credit utilization is always low.


I have kept utilization under 30%, and do use it monthly (lowest monthly balance posted thus far $150). Does carrying a higher balance result in a CLI?

Only benefits that interest me are extended warranties, and price protection.

I do want to add accounts, but don't want to keep adding hard inquiries.
Elan: Visa $1,500

TransUnion 722 -6

im_mr_awesome
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Re: CLI vs Adding a 2nd card

Postby im_mr_awesome » Tue Jun 27, 2017 2:54 pm

Travis wrote:
cltphotog wrote:
Travis wrote:I have kept utilization under 30%, and do use it monthly (lowest monthly balance posted thus far $150). Does carrying a higher balance result in a CLI?

Only benefits that interest me are extended warranties, and price protection.

I do want to add accounts, but don't want to keep adding hard inquiries.



Carrying a balance incurs interest unless you're under a 0% APR promotional period. I do not recommend carrying a balance unless it's 0% promo. Even then, only carry a balance if it's below 30% of your CL. Make sure you pay off the balance on that card at least a month prior to applying for anything new so your score is the best it can be and you get the best terms on the new credit line. As for what results in a CLI, this is up to each bank. Capital One gives out CLIs (it seems) based on your Income to Debt ratio and your payment history with them. I've seen CLIs on Cap 1 on maxed out cards. Other banks (Comenity has shown me this) just give them out monthly assuming regular responsible use.

Most reputable banks have extended warranty, and all major payment networks have them in some form. There's a good article on NerdWallet that gives a chart on what's covered and for how long. Basically AMEX is the best, and the other three (Discover, Visa Signature, MasterCard) have varying levels of coverage.

For price protection, I haven't dealt with this much, but I know Citi Price Rewind works fairly well. Remember this is not automatic, though, so you have to actively look for a lower price afterward. I only find this useful if you are going into a sale season such as a holiday or Black Friday. It allows you to get the shopping done before the chaos, and still generally get a good deal.

Adding an account that doesn't have an annual fee is worth the hard inquiry if you are not applying for a mortgage in the next two years. Inquiries drop off after 24 months, and only have any significant impact in the first 6 months. If you apply for keeper cards, such as the AMEX Everyday, Citi ThankYou, Discover IT, Chase Freedom, or other point-earning cards without annual fees from Top-Tier banks, you can keep the card forever, and it helps your AAoA. This makes it less painful to close old cards like your Elan card if you want to in the future. There are a lot of good posts explaining that here on CCF.

[EDIT] Some might disagree on the short term usefulness of this, but I recommend opening as many useful cards as you can as soon as you can so you can establish a strong old base of cards that pads your AAoA. It also gives you more accounts, which is helpful if you have a thin credit profile.
Scores on the mend...
FICO: 654 (7/2017, AMEX), Vantage: 663 (CK)
Cards I Use Amex Premier Rewards Gold, Discover IT, Capital One QuickSilver MC, Amex Gold Delta (for the free bag)
Sock Drawer Chase Amazon, AE Visa, CareCredit, several store cards for util padding
Next Card Amex Everyday



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