Card for increasing total available credit?

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im_mr_awesome
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Card for increasing total available credit?

Postby im_mr_awesome » Wed Jun 29, 2016 4:43 pm

I have a few cards that I applied for, thinking I'd use them, and either never did or very seldom charge a few dollars. They're basically sock drawered, and include a few retail credit cards (Target, Express, etc), and a Care Credit card. At first, I viewed them simply as something else I had to keep an eye on, but over the past few months I've been looking at them on my Credit Karma profile, noticing they always have a $0 reported balance, and so they keep my total utilization low. Sweet. Obvious, but sweet.

My question to you is: do you have a card (or two or five) that you only keep open to maximize your total available credit, but you don't ever use? If so, what card have you chosen for this? Is there a reason? And finally, how generous have lenders been with CLI requests on these infrequently used cards?
Scores on the mend...
FICO: 650 and holding
Cards I Use Chase Amazon Prime VS, Capital One QuickSilver MC
Sock Drawer Discover IT, AE Visa, CareCredit, CreditOne (keeping for history for now). Various store cards for history and utilization padding
Short Goal Reach 680


kdm31091
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Location: Claymont, DE

Re: Card for increasing total available credit?

Postby kdm31091 » Thu Jun 30, 2016 5:42 am

I don't have/keep any otherwise useless card with a large limit, mostly because I think people get far too wrapped up in needing a bunch of large limits. An emergency notwithstanding, there isn't much reason to have a bunch of huge limits, other than to stroke your own ego.

You can keep your utilization low regardless of limit by paying in full before statements come. To me, it's really not worth the bother unless you have a major app coming up, since utilization has no memory month to month. In the case of those store cards, I'd be closing them quickly if they were of no use to me.

Low utilization is still low whether you have 25k in limits or 100k in limits.

To My Credit
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Re: Card for increasing total available credit?

Postby To My Credit » Thu Jun 30, 2016 6:12 am

kdm31091 wrote:I don't have/keep any otherwise useless card with a large limit, mostly because I think people get far too wrapped up in needing a bunch of large limits. An emergency notwithstanding, there isn't much reason to have a bunch of huge limits, other than to stroke your own ego.

You can keep your utilization low regardless of limit by paying in full before statements come. To me, it's really not worth the bother unless you have a major app coming up, since utilization has no memory month to month. In the case of those store cards, I'd be closing them quickly if they were of no use to me.

Low utilization is still low whether you have 25k in limits or 100k in limits.

Exactly. I have limits of $5000 on three of my cards and that's as much as I need from my cards. I have $10000 on my AmEx and I don't know if I'd even want a higher limit than that. As long as you keep your expenses in check and pay often enough, you can keep a low utilization no matter what your overall limit is.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

im_mr_awesome
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Location: Indianapolis, IN

Re: Card for increasing total available credit?

Postby im_mr_awesome » Thu Jun 30, 2016 1:57 pm

kdm31091 wrote:In the case of those store cards, I'd be closing them quickly if they were of no use to me.



I've been tossing back and forth to keep them or close them. Since they'll keep reporting positively for quite a while, I suppose there's no harm in closing them, especially if they're newer, as my AAoA would increase a bit. I just can't see myself buying a lot of cheap yet expensive clothes at Express...
Scores on the mend...
FICO: 650 and holding
Cards I Use Chase Amazon Prime VS, Capital One QuickSilver MC
Sock Drawer Discover IT, AE Visa, CareCredit, CreditOne (keeping for history for now). Various store cards for history and utilization padding
Short Goal Reach 680

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CarefulBuilder14
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Re: Card for increasing total available credit?

Postby CarefulBuilder14 » Thu Jun 30, 2016 3:39 pm

Nothing quite fits that description for me. The closest card is BCE.

BCE was once 60% of my total non-NPSL CL ($6k of $10k). I got Sallie Mae just a few weeks later, so the card hasn't seen much use. I kept it for offers, history, and nerf insurance. Having a utilization buffer wasn't my intent, but it was a result.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

TXviking
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Re: Card for increasing total available credit?

Postby TXviking » Thu Jun 30, 2016 6:55 pm

I frequently run up balances of between $5K and $10K for business travel. I try to make sure I have at least $100K available at all times — not because I'd charge that much, but because of the utilization game. This way I can mostly keep my utilization under 5%, even if I have say $6K worth of hotel and rental car stuck on the card for a few weeks. Not that 5% is an absolute goal, but I try to keep it under that. I also pay in full every month, but I try to avoid having everything paid off at once because apparently that's bad too. :rolleyes:



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