limit building expert needed

Discussion in 'Credit Talk' started by bobby, Aug 21, 2000.

  1. bobby

    bobby Guest

    1-Should I close lower limit accounts to get higher lines on offers? My situation is as follows
    a-Discover platinum-7600 limit open 6 months
    b-Citibank platinum-5000 limit open 2 months
    c-Providian Classic-3000 limit open 4 years
    d-MBNA CHECK ACCOUNT-2000 limit open 8 months
    e-Gm card -1500 limit open 4 months
    f-Bank of America secured-1000-open 6 months
    g-Amex Optima -1000 limit open 6 months
    h-Goodyear card -1050 limit open 10 mnths
    i-Target -400 limit open 10 mnths

    What should I do from here to build higher limits or FICO SCORES?Thanks for any advice
  2. CardReport

    CardReport Guest

    RE: limit building expert need

    Personally, I wouldn't ask for a limit increase until I had had that particular account for at least a year.

    I strongly suggest that you *keep* the Providian, because creditors like to see you have kept accounts for a long time, as a general stability factor. Also, if you close a very recently-opened account (e.g. 6-12 months old), then that card issuer may not have been able to recover their aquisition costs, (i.e. the costs of getting you as a customer), and it might suggest that you are "rate-surfing" (jumping from card to card for low intro-rates), which makes you look UNprofitable.

    A good general strategy is just to use a card and pay it off completely each month, or at least make reasonable-sized payements (like 20%.) If you are carrying any significant revolving debt, then perhaps try shifting it around with balance transfers (Discover and CitiBank may send you some convenience checks if you make big payments), so that you don't look like you are in a stagnant, chronic debt situation.

    Unless you have some pressing need, I would wait until one of the accounts (besides Providian) was at least a year old, and then ask for an increase. If you get a rejection with "too many open accounts," then the Target and Goodyear should probably be the first to go. When the secured BofA is a year old, ask for the deposit back, pointing out your other cards, and threaten to close the account if they don't de-secure it.

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  3. RichGuy

    RichGuy Guest

    Basic Principles


    I'd love to be in your situation. I think there are a few basic principles of credit involved here. I can't apply all of them yet myself, but they would probably help you.

    First, some banks want to increase your limits, while others prefer to give you limits that are relatively small given your other limits. The banks that have given you higher limits already are the most likely to raise your limits. Discover is obviously your best account so far, while Citibank and Providian are well known for raising limits frequently. Each of them has roughly quintupled my limit within the last year or less.

    As Barry N. mentioned a few days ago, you need to have a couple of accounts that have been open for a while. That makes your Target and Goodyear accounts important for now, and makes it especially important to keep your Providian account. I have accepted that my own Providian account is crucial, both because it's one of my oldest and because they will likely continue to raise my limits.

    It's hard to detect what possible good your relatively small GM and Bank of America accounts could be doing. You obviously don't need a secured account any more. I saw a partial model of a FICO score at, and it looked as if more than TWO revolving accounts would lower your score. Nine accounts are probably too many for you, and those two accounts would probably do you more good closed than open.

    As you consider how to raise your limits, you need to ask yourself what KIND of credit you want to have a lot of. Since AmEx and MBNA have such good reputations, it seems worthwhile to continue with them and see what they end up giving you.

    These principles are based largely on reading the better postings on this site, and partly on my own experience. It looks like you have a great future ahead of you, and I hope you keep us informed about your results.
  4. Terry

    Terry Well-Known Member

    RE: Basic Principles

    Getting ready to book a $5K+ vacation. All our credit cards are low interest/no fee, but generally paid off each month. Wonder if I should look for some other reward type card?
  5. creditwork

    creditwork Well-Known Member

    RE: limit building expert need

    I agree with RichGuy and CardReport. My method has worked for me and everyone else that has tried it. You want higher limits?
    Exercise your credit. Borrow close to the limit and make large payments (10-20% of the line) and make them early. Don't be afraid to close the lower lines and certainly close the secure line. Use balance transfers, as much as possible to lower your costs. It works for me. I have over $140,000 with about 17 open lines.

    Profit from the experience.
  6. RichGuy

    RichGuy Guest

    RE: limit building expert need

    My friend is trying to work up to $100,000 on a single card. His highest now is about $25,000. Maybe I can persuade him to use your
    fairly simple technique.

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