getting a credit card limit increase

[Tdbo]

Originally Posted By: Fordtrucktexan
I've been checking into this myself for the same reason - rainy day (without having to obliterate my savings). My local credit union must make their credit decisions with a Magic 8 ball. A friend of mine pays his credit card off every two weeks, but maxes it out regularly, and they raised his limit automatically without him asking. I use mine sparatically, and when I do use it, I pay the balance in 30 days. I'll go months without using it sometimes. When I asked for a limit increase, it was denied.



Credit unions are generally very conservative in making such decisions.

Your friend maxes his out, thus he has demonstrated the "Need" for a higher credit limit.

They gave him a higher limit 1) because they want the additional revenue from CC fees and 2) If he pulled his FICO during the times that it is maxed, it would probably take a 10-20 point hit because the % of debt/available credit is high during the period prior to his payment being posted.

According to you, you live well within yours. You may want to get aggressive with your usage for awhile with your CU card, or get one from a bank.

 

[RTexasF]

Originally Posted By: kozanoglu
7.9% is not low. Inflation is around 0, Fed rate is around zero. What makes it right to charge 7.9%?


The standard rate on credit cards is considerably higher than than even with an excellent credit rating. That is a very good rate.

 

[RTexasF]

Originally Posted By: motor_oil_madman
I want to get the limit raised on my credit card. My bank doesn't raise it automatically like on my other card. I'm worried they won't raise it though since I haven't really put much on it in the last 6 months. The card doesn't give me points so that's why I don't use it, but it has a ridiculously low interest rate. The other one with a high interest rate I just pay in full every month. Do you think they will decline my request if I haven't used the card much?


I have a similar situation.......7.5% but a low limit. In order for the issuer of the card to raise the limit I must request it in writing, then send them all kinds of proof of income, then they have a board meeting to determine if I am worthy or not. Real horse & buggy style of operation.

 

[OneEyeJack]

My account manager at the bank said my credit classification in polite terms is "ghost". My score is "zero". I own 3 homes all paid for and have never had a credit card, only a debit card and checking accounts. The only thing I've ever financed was my first house in the 70's but paid it off in 15 years. After seeing what I paid in interest I said, never again. I only purchase things I can pay for and I live within my means. That makes me a terrible credit risk, a person that is completely untrustworthy when it comes to spending. I think the less than polite classification for me in the banking and credit world is "dead-beat". It appears that a FICO score is a number that indicates how well you have responded to training and how much you contribute to the credit and lending business especially if you make your interest only payments on time each month. This makes perfect sense and those that participate and have high scores should be proud of their achievement.

 

[99Saturn]

Originally Posted By: OneEyeJack
My account manager at the bank said my credit classification in polite terms is "ghost". My score is "zero". I own 3 homes all paid for and have never had a credit card, only a debit card and checking accounts. The only thing I've ever financed was my first house in the 70's but paid it off in 15 years. After seeing what I paid in interest I said, never again. I only purchase things I can pay for and I live within my means. That makes me a terrible credit risk, a person that is completely untrustworthy when it comes to spending. I think the less than polite classification for me in the banking and credit world is "dead-beat". It appears that a FICO score is a number that indicates how well you have responded to training and how much you contribute to the credit and lending business especially if you make your interest only payments on time each month. This makes perfect sense and those that participate and have high scores should be proud of their achievement.


Why do you not engage in points related credit cards, paying in full every month?

 

[OneEyeJack]

Originally Posted By: 99Saturn
Originally Posted By: OneEyeJack
My account manager at the bank said my credit classification in polite terms is "ghost". My score is "zero". I own 3 homes all paid for and have never had a credit card, only a debit card and checking accounts. The only thing I've ever financed was my first house in the 70's but paid it off in 15 years. After seeing what I paid in interest I said, never again. I only purchase things I can pay for and I live within my means. That makes me a terrible credit risk, a person that is completely untrustworthy when it comes to spending. I think the less than polite classification for me in the banking and credit world is "dead-beat". It appears that a FICO score is a number that indicates how well you have responded to training and how much you contribute to the credit and lending business especially if you make your interest only payments on time each month. This makes perfect sense and those that participate and have high scores should be proud of their achievement.


Why do you not engage in points related credit cards, paying in full every month?


I live a simple life and most of my transactions are cash/barter. I've never felt comfortable with the idea of a credit card. Old habits are hard to put aside. I never want to be in a position where I owe someone money or have to ask or apply for money that I have not earned. I understand that having credit is the way of the world, it's just not for me, even if I miss out on collecting points toward something or other. I do not believe that I can afford those point schemes just like I don't like the idea of paying interest on a debt.

Your comment is well taken and that very idea works especially well for one of my neighbors that plays the game like a general directing his troops in battle. He keeps a spreadsheet pined up on his home office wall. He makes his moves and keeps score. His system would make a great board game.

 

[supton]

I've always agressively paid off loans yet I have pretty high credit rating (820?). "Making the bank the most money" is not how they base those scores.

If I didn't take out loans I'd have to wait until I was 40 before I could have bought a house and had kids. Perhaps later.

I personally want another CC if not two. When one gets hacked I still have a card to get by for the few days until the new one shows up. I refuse to use my debit for anything--one breach there and it's bye-bye bank account. At least until that snafu is fixed.

 

[MalfunctionProne]

http://www.creditboards.com

 

[kozanoglu]

Originally Posted By: Tdbo
Originally Posted By: kozanoglu
What makes it right to charge 7.9%?



Maybe the fact that it is an UNSECURED credit line?

Unsecured is the NORM.

 

[pandus13]

Originally Posted By: OneEyeJack
My account manager at the bank said my credit classification in polite terms is "ghost". My score is "zero". I own 3 homes all paid for and have never had a credit card, only a debit card and checking accounts. The only thing I've ever financed was my first house in the 70's but paid it off in 15 years. After seeing what I paid in interest I said, never again. I only purchase things I can pay for and I live within my means. That makes me a terrible credit risk, a person that is completely untrustworthy when it comes to spending. I think the less than polite classification for me in the banking and credit world is "dead-beat". It appears that a FICO score is a number that indicates how well you have responded to training and how much you contribute to the credit and lending business especially if you make your interest only payments on time each month. This makes perfect sense and those that participate and have high scores should be proud of their achievement.

small correction: "dead-beats" will be us that pay the balance in full every month....
you are (like beginning of the post) a "ghost"....

 

[opus1]

Originally Posted By: pandus13
Originally Posted By: OneEyeJack
My account manager at the bank said my credit classification in polite terms is "ghost". My score is "zero". I own 3 homes all paid for and have never had a credit card, only a debit card and checking accounts. The only thing I've ever financed was my first house in the 70's but paid it off in 15 years. After seeing what I paid in interest I said, never again. I only purchase things I can pay for and I live within my means. That makes me a terrible credit risk, a person that is completely untrustworthy when it comes to spending. I think the less than polite classification for me in the banking and credit world is "dead-beat". It appears that a FICO score is a number that indicates how well you have responded to training and how much you contribute to the credit and lending business especially if you make your interest only payments on time each month. This makes perfect sense and those that participate and have high scores should be proud of their achievement.

small correction: "dead-beats" will be us that pay the balance in full every month....
you are (like beginning of the post) a "ghost"....
I've heard the term "Free Rider" used to label those of us who pay in full each month.

 

[opus1]

Originally Posted By: OneEyeJack
Your comment is well taken and that very idea works especially well for one of my neighbors that plays the game like a general directing his troops in battle. He keeps a spreadsheet pined up on his home office wall. He makes his moves and keeps score. His system would make a great board game.
Are we neighbors?

I play the same game but not to the detail of spreadsheets. My go-to card is my GM Card, until I hit the earnings cap for the year (I have the original blue card). After that I have other cards that accumulate points, and I track the quarterly promotions to make sure I'm using the right card in the right store, for example right now I use my Chase card when I do grocery shopping. At least until March 31, 2015. I guess I need to find a hobby or something...

 

[Tdbo]

Originally Posted By: kozanoglu
Originally Posted By: Tdbo
Originally Posted By: kozanoglu
What makes it right to charge 7.9%?



Maybe the fact that it is an UNSECURED credit line?

Unsecured is the NORM.




LOL.

 

[javacontour]

Even those who pay in full each month are not dead-beats. After all, the merchant pays to accept the card.

So even if you pay in full each month, incurring no fees or interest, the system is making money.

Not to mention, your spending habits have some value for marketing.

 

[GMFan]

When I needed a higher credit limit on my Chase CC I called them up. When asked the reason I was applying for a higher credit rating I said for medical bills (which was the truth). They gave me a big increase. I guess they saw $$ signs in their eyes.

 

[hattaresguy]

Ask them, most of the time they raise it.

BTW you should be getting at least 1% back on whatever you charge in points. The computer I'm typing on now was purchased with CC points and didn't cost me a dime.

 

[hattaresguy]

Originally Posted By: pandus13
Originally Posted By: OneEyeJack
My account manager at the bank said my credit classification in polite terms is "ghost". My score is "zero". I own 3 homes all paid for and have never had a credit card, only a debit card and checking accounts. The only thing I've ever financed was my first house in the 70's but paid it off in 15 years. After seeing what I paid in interest I said, never again. I only purchase things I can pay for and I live within my means. That makes me a terrible credit risk, a person that is completely untrustworthy when it comes to spending. I think the less than polite classification for me in the banking and credit world is "dead-beat". It appears that a FICO score is a number that indicates how well you have responded to training and how much you contribute to the credit and lending business especially if you make your interest only payments on time each month. This makes perfect sense and those that participate and have high scores should be proud of their achievement.

small correction: "dead-beats" will be us that pay the balance in full every month....
you are (like beginning of the post) a "ghost"....


Factually incorrect. Also look up the term charge card, which is not a CC.

Every time you use a CC merchants get charged fees, that's how the CC companies make a built in return on the money they lend. The 1% they kick back to you is just an incentive. Amex for example gets about 4% +/- and kicks you back .5%-1.5% depending on your rewards program. They also charge you a yearly service fee.

For example say I have an Amex Platnum and I spend $100k a year on it, paid in full ever month since its a charge card.

Amex gets about 4% in merchant fees and kicks me probably about 1.5% back in points, plus I get to pay the yearly $495 fee. So they make a minimum of $3,500 off me.

Going into it further their is a lot of money to be made selling information about what, when, and how consumers make purchases. Guess who has all this to sell??

Personally I don't understand why people would risk their own money with a debit card, or go threw the hassle of having a separate account for it so you don't get wiped out when it's stolen. If you want to Dave Ramsey it use an Amex charge card and Amex will simply shut you down if you don't pay your bill in full at the end of the month.

 

[Astro14]

Originally Posted By: kozanoglu
7.9% is not low. Inflation is around 0, Fed rate is around zero. What makes it right to charge 7.9%?


What are the rates on your credit cards, then? This is a very low rate. Don't like it? Don't keep a balance....

 

[pandus13]

javacontour and hattaresguy, thanks, every day you learn something new.

 

[kozanoglu]

Originally Posted By: Astro14
Originally Posted By: kozanoglu
7.9% is not low. Inflation is around 0, Fed rate is around zero. What makes it right to charge 7.9%?


What are the rates on your credit cards, then? This is a very low rate. Don't like it? Don't keep a balance....


A high of 6.25%. High because banks' cost is zero. If you count merchant fees, it is in the - territory.