What should I do about my credit utilization?

For just about anything you want to get off your chest about credit cards.
10 posts
johnnyquest
 
Posts: 2
Joined: Tue Jun 24, 2014 1:57 pm
Location: USA

What should I do about my credit utilization?

Postby johnnyquest » Tue Jun 24, 2014 2:29 pm

Hi guys,

Just wanted to pose a quick question to some of the experts here about how I might proceed with a credit decision I'm debating with myself right now.

I've got a decent credit score currently (mid 730s), but the age of my accounts is low (average of 3 1/2 years). My credit utilization is also at 25%, partially because I haven't had the limit raised on any of the cards I currently have (had to rebuild my credit over the last couple years just a tad after racking up some higher utilization). So my overall credit amount is pretty small.

I'm very interested in the Barclaycard Arrival Plus World Elite credit card, given that I need a card with no foreign transaction fees for some traveling I'll be doing in a month. I'd like to start accruing some points for travel in the future too. I gather I'd have a good chance of getting this card, even if I have to settle with a low credit limit on it. But I wonder if I should see about getting the credit limits of my current cards raised first, perhaps increasing my chances of getting the Barclaycard?

What should I do? Should I increase the credit limit on my current cards first, thus making it possibly easier to get the Barclaycard? Or do I get the Barclaycard first, with my resulting lower credit utilization ratio making it possibly easier to get my credit limits on my other cards raised?


attrapereves
Platinum Member
Platinum Member
 
Posts: 58
Joined: Tue Jun 24, 2014 2:44 pm
Location: Missouri

Postby attrapereves » Tue Jun 24, 2014 3:28 pm

I would try to get the limit raised on your current cards first.

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Tue Jun 24, 2014 3:31 pm

So you think that 25% is high utilization? By what standard? I don't consider it high or a problem, as long as you don't have issues with it. Especially as you mention low limits, I mean if you owe 500 on 2k, well I find it hard to imagine too many people are going to consider that a lot of debt.


I wouldn't take hard pulls to try to increase the limits. I would say the version you want is tougher to get and you might not get it (The world Elite version). I had the world and they didn't upgrade me to Elite but it's case by case just warning you that you might not get it. Or you might and you might be surprised. It's hard to know.


Anyway I don't see 25% as high, and I don't suggest getting hard pulls before applying. Maybe just app and see what happens. Worst that can happen is you get a hard pull for nothing. You can recon with them as well.

johnnyquest
 
Posts: 2
Joined: Tue Jun 24, 2014 1:57 pm
Location: USA

Postby johnnyquest » Tue Jun 24, 2014 4:16 pm

MemberSince99 wrote:So you think that 25% is high utilization? By what standard? I don't consider it high or a problem, as long as you don't have issues with it. Especially as you mention low limits, I mean if you owe 500 on 2k, well I find it hard to imagine too many people are going to consider that a lot of debt.


I wouldn't take hard pulls to try to increase the limits. I would say the version you want is tougher to get and you might not get it (The world Elite version). I had the world and they didn't upgrade me to Elite but it's case by case just warning you that you might not get it. Or you might and you might be surprised. It's hard to know.


Anyway I don't see 25% as high, and I don't suggest getting hard pulls before applying. Maybe just app and see what happens. Worst that can happen is you get a hard pull for nothing. You can recon with them as well.


Lol, I don't think 25% is necessarily high utilization. The moderator appended that to my original title, which wasn't very descriptive. I'll point out though that my utilization is 25% out of $4,500.

But I'm inclined to agree with you on just going ahead an applying for the card now. I have three hard pulls on my credit currently. Don't want to rack up more, especially right before a credit card app.

What does the recon process entail? Does that involve a hard pull?

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Wed Jun 25, 2014 11:38 am

25% isn't high though it is approaching the generally recommended 30% max. Approval odds, CL's and APR's on new cards may be better with lower utilization. Can't speak to specific effects in your situation -- it's just a generalization. It wouldn't hurt to try to increase your existing CL's assuming you can do so with SP's.

You can also adjust reported utilization by paying right before your cards report.

johnnyquest wrote:I have three hard pulls on my credit currently.

With which CRA's and how old is each?

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Wed Jun 25, 2014 1:15 pm

The recon process would be you call their credit analysts and tell them that you were declined but would like to ask for reconsideration. Be prepared to explain why you want the card if they ask and to answer their questions and concerns about your credit.


When I did it with Barclays I did get another hard pull so it is possible. You have to decide if that is a price you are willing to pay.

supercoolman
Centurion Member
Centurion Member
 
Posts: 176
Joined: Thu Jun 12, 2014 12:48 am
Location: South Bay Area

Postby supercoolman » Wed Jun 25, 2014 10:06 pm

@MemberSince99
but I don't see any Barclays card in your list

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Thu Jun 26, 2014 5:40 am

I closed it, after I had a couple of episodes with their customer service that made Cap One look like they have it together, and I did not get the "Elite" version of the Arrival card when it became available. I decided at that point the annual fee was not worth it to me to pay and I closed it. I do not see myself currently ever going back to Barclays but I would never say never even though I just did.


Just because I don't have a certain card right now doesn't mean I never had one. Unlike most I don't believe in hoarding cards until the day I die. I can't take them with me as far as I know. I can't say I regret getting down to 4 cards one bit and in fact I'd ideally prefer 3 so I would expect one more to go within the next year. At that point I'm done. I don't want a pocket full of credit cards to manage anymore, one for every day of the month. That just drove me nuts.

supercoolman
Centurion Member
Centurion Member
 
Posts: 176
Joined: Thu Jun 12, 2014 12:48 am
Location: South Bay Area

Postby supercoolman » Thu Jun 26, 2014 8:16 am

was just surprised to see that you tried hard to get a card, but the card isn't in your list. is it possible to share your stories if possible? it seems that the overall review is good with Barclays and I'm considering a Barclays CC for the next spree, so I'm interested to know what had happened that had you arrived at the decision of closing the card.

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Thu Jun 26, 2014 9:15 am

Hate to thread jack on this poor guy. But, since you asked, I had the Arrival card, which was the World version and they upgraded it to the Plus when that came out. I wanted to get the Elite version as that's the best for travel (I mean it's a travel card so why not have the best travel card you can get) so I called their CS and it was like talking with the 3 stooges. I finally got through to a rep who would tell me if I would be getting the Elite and the answer was no.


I would GUESS the reason is that I did not put enough spend through the card. This is true as I was putting on Discover trying my futile attempt to get a CLI from them.


But that's the story of that. I had the Arrival just was not given the World Elite version when that came out. They made their business decision which I honestly agree with based on my spend on the card, and I made mine. I guess it all worked out in the end as now I have the Amex Plat and that is going to be my travel card period, and that's it.


I wouldn't say too that I tried hard to get it, I just asked. Citi really made me work to get one of their cards and once I had one, found it wasn't worth a hard fight to get (in my opinion). But I've been declined plenty of times. Most recently just for upgrades and CLIs but those cards are now history. The things I learned from my experiences was don't have more cards than you can use just to collect them, don't worry about keeping your lenders thrilled let them worry about thrilling me (you simply cannot please some of them and frankly you shouldn't live to anyway you're the customer they need you more than you need them) and just let what comes, come and don't sweat the rest. Life is too short to make credit cards a full time obsession. That's why I only have 4 and want to downsize to 3.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests