Gamma wrote:I'd like to have the credit limit matching my highest ones and keep it at that in case there's ever a need for a balance transfer. They constantly offer me one online but no need for one right now. 10k would be more than enough that I would need to keep a balance on one card than having it on 2 cards (I currently have balances on 2 cards with 0% promo) I don't plan on getting more increases after that, even if they still have those soft pull cli. Having too much on one credit line can also be bad.
The problem with balance transfer cards is that it can be hard to get one when you need one (due to high utilization). But if you get one in advance of actually needing it, you waste some or all of the 0% promo period.
Or do you get 0% APR BT offers beyond the intro period that everyone gets? Presumably there's a 3% or so BT fee that is rarely (or never) waived?
Having 2 or 3 major cards is better than having one, but I see some people try to "diversify" among cards and issuers way too much. It seems to lead to a lot of low CLs and a lousy AAoA. Then, when one lender gets nervous about the massive growth in someone's available credit and gives a CLD or closes an account, the cardholder is thrilled about how "diversifying" across issuers saved them from worse trouble.
Also having a huge available CL on a store card, or one with bad rewards, can be a headache. I'm looking forward to being able to move some of my BCE line over to EDP.
High limits may attract other high limits some of the time, but they can also mean a rapidly growing available-credit-to-income ratio that can be scary for issuers.
Vermonster wrote:I don't have a Discover but I do have an Amex, and one of the reasons is their easy 3x cli. My util reports around 60% despite paying in full. My score is being held back because of this. I have added quite a lot of credit over the last few months so it is looking better. If I were to not lower the balance on my current cards, I would still be under the esteemed 30%.
30% isn't so esteemed. Lower utilization - so long as it isn't actually 0% - is better. 5% would be better than 30%. Paying in full once or twice in the middle of a cycle can help.