Unnecessarily high CLs?

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MemberSince99
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Re: Unnecessarily high CLs?

Postby MemberSince99 » Wed Jun 17, 2015 6:03 am

Hopefully you don't want to spend 10 years paying down a balance on ANY credit card. If you do that, and you aren't bouncing them from one 0% promotion to another, you are going to pay 3 times as much as the balance in interest before you are done. If you think about it that way, kind of makes you wish you'd have just saved up the money instead doesn't it?

Not only that, but the utilization may affect your score, even if you are using 0% promotions.


kdm31091
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Re: Unnecessarily high CLs?

Postby kdm31091 » Wed Jun 17, 2015 8:02 am

CarefulBuilder14 wrote:When it comes to CLs, the general consensus is that bigger is always better. It’s certainly true that if you spend a lot on a card, then having a high CL (or NPSL) is nice.

But here are some cases where it seems a bit unnecessary or even ridiculous. I’d happily take a higher CL on my EDP or CSP, but I certainly don’t need more on my BCE or Sallie Mae. Those BCE ($6k) and SM ($4.5k) limits are in excess of what I need, but I don’t think they are unusually high.

I see people who already have $10k+ of credit on individual store cards they barely use constantly pushing for more. It’s also true of some major network cards with lousy rewards but high CLs.

I don’t totally get why the focus on high CLs is so common. Getting a higher CL on a card you don’t use much seems very counterproductive. It doesn’t take very many $10k+ CLs to quickly put most people into the “too much available credit” category where they can get declined despite an otherwise good application.

Unless you have a commensurate income, isn’t a high CL on a card you don’t use much just kind of dead weight?

My highest CL is only $6k, but I get instant approvals for the cards I want. I don’t have my existing CLs crowd out a new card I might really like.

Of course, if someone has high utilization or needs to do a BT, I can understand the desire for a high CL. I’m talking about people who PIF and just like the high CL game. The rewards/bonus/perks game is a lot more fun. :D


I think some people push for CLIs when they don't really need them. Also people fail to keep in mind that the higher your limits are, the lesser your chances for approvals or at least high limit approvals in the future because your income/file will only allow you so much credit. People forget or ignore this ceiling all the time, especially on MF. They're egged on to apply apply apply and "hit the luv button" even when it's truly not needed.

It also tempts people into overspending because they feel they have more room to spend with the high limit. Then they spend years paying it off.

Of course, I love CLIs. But my cards have all gotten to the point where they absolutely have "enough" credit. An increase is always nice but I really don't need it.

MemberSince99
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Re: Unnecessarily high CLs?

Postby MemberSince99 » Wed Jun 17, 2015 8:32 am

Anyone who overspends because they have a high limit is a fool. It's hard to feel sorry for anyone who does that.

I say go for as much limit as you can get, but treat them as a debit card. Hard to get in trouble that way.

rockyrock
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Re: Unnecessarily high CLs?

Postby rockyrock » Wed Jun 17, 2015 8:41 am

CarefulBuilder14 wrote:
rockyrock wrote:My signature is afu btw. The "new and improved" forum limits the characters for signatures so I can't change it without losing the format. My CSP is now a Freedom and I've added a Citi AT&T Access More.

At one point I was trying to collect as much availability as I could. Now I'm looking to reduce it in a way that won't hurt my score.

As far as the signature, I find card abbreviations are a must. It does make things confusing for new people, though. It look me a while to figure out what "CSP" meant when I joined.

Have you been declined for cards you've wanted for having too much available credit? Or you just find you don't need it/that AF doesn't make sense for you?


I disagree on the signature, it takes up the same amount of (vertical) space across the bottom whether it's three lines that go half-way across or three lines that go all the way across...

I haven't been declined for a card in years but I've clearly peaked. In Jan/14 Citi approved me for the Exec/AAdv at $19k, last month they approved the AT&T with a $8.5k. It could be several factors but my FICO is the same (or better) but my utilization is higher with a few BTs, I have a car note and it is the second card from Citi.

On the other hand, years ago the Marriott started at $12k and three years later CSP came in at $20k.
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Nixon
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Re: Unnecessarily high CLs?

Postby Nixon » Wed Jun 17, 2015 9:07 am

kdm31091 wrote:I think some people push for CLIs when they don't really need them. Also people fail to keep in mind that the higher your limits are, the lesser your chances for approvals or at least high limit approvals in the future because your income/file will only allow you so much credit. People forget or ignore this ceiling all the time, especially on MF. They're egged on to apply apply apply and "hit the luv button" even when it's truly not needed.

It also tempts people into overspending because they feel they have more room to spend with the high limit. Then they spend years paying it off.

Of course, I love CLIs. But my cards have all gotten to the point where they absolutely have "enough" credit. An increase is always nice but I really don't need it.


Dude, I agree with you there. Cheerleading and egging people on to apply and at the same chastising them for leaving the garden. It's hilarious.
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kdm31091
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Re: Unnecessarily high CLs?

Postby kdm31091 » Wed Jun 17, 2015 9:12 am

Nixon wrote:
kdm31091 wrote:I think some people push for CLIs when they don't really need them. Also people fail to keep in mind that the higher your limits are, the lesser your chances for approvals or at least high limit approvals in the future because your income/file will only allow you so much credit. People forget or ignore this ceiling all the time, especially on MF. They're egged on to apply apply apply and "hit the luv button" even when it's truly not needed.

It also tempts people into overspending because they feel they have more room to spend with the high limit. Then they spend years paying it off.

Of course, I love CLIs. But my cards have all gotten to the point where they absolutely have "enough" credit. An increase is always nice but I really don't need it.


Dude, I agree with you there. Cheerleading and egging people on to apply and at the same chastising them for leaving the garden. It's hilarious.


It's the MF cycle and sadly, truly good advice is becoming rarer and rarer there. There are still some good posters but it has definitely gone downhill

Nixon
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Re: Unnecessarily high CLs?

Postby Nixon » Wed Jun 17, 2015 9:15 am

kdm31091 wrote:
Nixon wrote:
kdm31091 wrote:I think some people push for CLIs when they don't really need them. Also people fail to keep in mind that the higher your limits are, the lesser your chances for approvals or at least high limit approvals in the future because your income/file will only allow you so much credit. People forget or ignore this ceiling all the time, especially on MF. They're egged on to apply apply apply and "hit the luv button" even when it's truly not needed.

It also tempts people into overspending because they feel they have more room to spend with the high limit. Then they spend years paying it off.

Of course, I love CLIs. But my cards have all gotten to the point where they absolutely have "enough" credit. An increase is always nice but I really don't need it.


Dude, I agree with you there. Cheerleading and egging people on to apply and at the same chastising them for leaving the garden. It's hilarious.


It's the MF cycle and sadly, truly good advice is becoming rarer and rarer there. There are still some good posters but it has definitely gone downhill


It's easy to see I created a balance there. LOL.
It's been about 1wk+ since I even bothered to open that page.
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kdm31091
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Re: Unnecessarily high CLs?

Postby kdm31091 » Wed Jun 17, 2015 9:17 am

You aren't missing much. It's the same topics over and over, with the same responses over and over

Nixon
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Re: Unnecessarily high CLs?

Postby Nixon » Wed Jun 17, 2015 9:20 am

kdm31091 wrote:You aren't missing much. It's the same topics over and over, with the same responses over and over


More Chase hysteria, Last I read... LOL.

Glad I got my Chase fix when it was easy.
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kdm31091
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Re: Unnecessarily high CLs?

Postby kdm31091 » Wed Jun 17, 2015 9:21 am

Nixon wrote:
kdm31091 wrote:You aren't missing much. It's the same topics over and over, with the same responses over and over


More Chase hysteria, Last I read... LOL.

Glad I got my Chase fix when it was easy.


3+ threads about the "new recon policy". They really need to let it go. It is what it is, and making a million threads analyzing it will not change anything.



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