TD credit card trolling for credit limit increases

[J-hop]

** clickbait **

This probably has a very simple explanation but TD has been sending me letters every month (or every second month not really keeping track) with offers to increase my credit card limit. They are now offering a 50% increase over my current limit. Which is useless as I rarely use more than 30% of my current limit.

Anyways my question is how exactly they come up with this number? It states they can retract the offer if "any adverse credit information is obtained between the date of this offer and the date of my acceptance".

So are they doing soft checks of my credit every month then? How does it work?

Do they base this on my spending?

Doesn't bother me in any way shape or form as the envelope usually just goes straight into the shredder and I don't care if someone is doing soft checks on my credit regularly. Just curious what information they use to get this number.

[Marsh]

They don't need to check your credit. They can just look at your payment history since your a client. Ie. if you have a $10k limit on your credit card, and on average you spend maybe 2k a month on your card but pay off the entire thing every time, to them you are a good candidate for a credit increase as you are low risk.

Not sure how exactly they calculate how much to offer to increase your limit by, but I'm sure its a function of your credit balance that you carry, the amount you pay off each month and any late payments. Probably some other factors too

[J-hop]

Originally posted by Marsh
They don't need to check your credit. They can just look at your payment history since your a client. Ie. if you have a $10k limit on your credit card, and on average you spend maybe 2k a month on your card but pay off the entire thing every time, to them you are a good candidate for a credit increase as you are low risk.

Not sure how exactly they calculate how much to offer to increase your limit by, but I'm sure its a function of your credit balance that you carry, the amount you pay off each month and any late payments. Probably some other factors too

I wonder though with their comment regarding credit how do they know I don't have a credit card with another institution that I'm severely in debt with

[Thaco]

Originally posted by J-hop


I wonder though with their comment regarding credit how do they know I don't have a credit card with another institution that I'm severely in debt with

its pretty obvious if you're responsible with them you're not gonna have a static credit with another bank.

[revelations]

You can call the CC company and tell them to stop. I did this with MBNA, back when they used to AUTOMATICALLY increase my credit limit.

[J-hop]

Originally posted by revelations
You can call the CC company and tell them to stop. I did this with MBNA, back when they used to AUTOMATICALLY increase my credit limit.

So far they haven't touched the limit. If they did start doing that automatically I'd be pissed, but for now I'm fine with the extra bit of paper/fire starting material each month.

[max_boost]

Last time I called into TD they had 3 increases available to me and I took them all. My limit went from 9 to 15 to 18 to 22 and all I had to do was just say yes, 3x. I took it but it's a card I seldom use. I keep it mostly for the Auto Club which is cheaper than AMA. From time to time you might be making some larger purchases so a card with a big limit can be handy.

[Thaco]

Originally posted by max_boost
Last time I called into TD they had 3 increases available to me and I took them all. My limit went from 9 to 15 to 18 to 22 and all I had to do was just say yes, 3x. I took it but it's a card I seldom use. I keep it mostly for the Auto Club which is cheaper than AMA. From time to time you might be making some larger purchases so a card with a big limit can be handy.

also not a bad thing to show a lower % of credit usage...

[schurchill39]

All I have is my RRSPs with RBC and once every few months I get a letter offering me a credit card there. I'd rather not sir, please fuck off.

[J-hop]

Originally posted by Thaco
also not a bad thing to show a lower % of credit usage...

But can't that at the same time negatively affect you when you say apply for a mortgage? Isn't the mortgage broker/bank concerned with what your maximum potential exposure could be?

My CC is used only as a convenience/substitute for cash. Never once knowingly carried a balance. But then again I've been told I'm cheap, my DD cost $2500

[killramos]

I get a letter offering me a higher limit every September (anniversary of my getting the card ). I thought this was all standard operating procedure for card issuers?

I do not understand why people get so hung up on "too high" credit card limits. It's certainly nice to have the limit just sitting there for the once in a blue moon purchase.

[Thaco]

Originally posted by J-hop


But can't that at the same time negatively affect you when you say apply for a mortgage? Isn't the mortgage broker/bank concerned with what your maximum potential exposure could be?

My CC is used only as a convenience/substitute for cash. Never once knowingly carried a balance. But then again I've been told I'm cheap, my DD cost $2500

same situation as you, i just abuse the shit out of my cards perks, never really need it.

I am sure your overall accessible credit could look bad in some situations, but there's nothing stopping you from making a call to decrease your limit if that ever comes in to play.

[dirtsniffer]

I was told take the increase when they offer. Much easier than when you ask for it. Booking everything for my honeymoon turned out to be much easier. And with their fraud prevention who cares how big your limit is.

[suntan]

Banks can no longer increase your credit limit without your consent due the tyrant Harper imposing his will onto Canada's cherished banking institutions.

So now they just beg you 3-4 times a year.

I carried a huge balance on my CC for a while, that's when I got the credit increase letters.

[jacky4566]

All im getting out of this thread is that J-hop is paying for a Beyond Vegas Trip!!

[jwslam]

Originally posted by max_boost
Last time I called into TD they had 3 increases available to me and I took them all. My limit went from 9 to 15 to 18 to 22 and all I had to do was just say yeah, 3x.

» Click image for larger version

[KPHMPH]

This thread blows my mind.

Why would you NOT want to have that increased credit line?

It really only affects you when it's secured to something, most times it is not.

It is always a bonus to have that backup money as well.

I guess everyone does things differently.

[riander5]

Originally posted by KPHMPH
This thread blows my mind.

Why would you NOT want to have that increased credit line?

It really only affects you when it's secured to something, most times it is not.

It is always a bonus to have that backup money as well.

I guess everyone does things differently.

I think you must mean like extreme dire end of the world emergency money. 20% interest i wouldnt consider backup money haha

[J-hop]

Originally posted by KPHMPH
This thread blows my mind.

Why would you NOT want to have that increased credit line?

It really only affects you when it's secured to something, most times it is not.

It is always a bonus to have that backup money as well.

I guess everyone does things differently.

So if you read the first post carefully I was looking for an explaination of what goes into the calculation to come up with this number, is it credit? Is it spending habits? Etc

Regarding your comment I have absolutely zero reason to ever in the foreseeable future need to increase my credit card limit more than it currently is. Increasing it "just cuz" isn't a good enough reason, my savings are my "backup money"

[KPHMPH]

I understand where your coming from but still am at odds with your logic.

My savings make between 9-12% on the money. My LOC costs me 3.2% so it's a smarter decision to use the LOC in the short then pay it off when given the chance rather than steal from the savings and all that free interest.

I guess I was replying to how the thread derailed and not the original post - sorry!

Edit: My eyes totally didn't read Credit Card and just read Credit. My bad!