TD credit card trolling for credit limit increases

[Kloubek]

Originally posted by killramos
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.

Reasons not to have more than a 5k limit:

First, some people are fucking clueless when it comes to their finances, and wrack up the charges. Or equally a poor economic decision not to pay it off each month. Some can't help themselves.

And yeah, there are far better sources of money than the 19-23% on a card.

The only justification I can see of needing it is if you are absolutely shit broke and need to get the money from elsewhere, but can't get loans or LOC. Or, perhaps, you are credit building.

The point about it adding to your potential credit load are true enough. I had to cut up a card and reduce a second when I was younger to manage my mortgage acceptance.

[Xtrema]

I expect to have a working income under 50.

Then I should have spent all my retirement savings by 70.

The I will liquidate all asset and live in some posh retirement community until 90.

Then I expect to blow all the credit cards that have automatically increase and run them to the max, kick the bucket and not paying them a single dime.

[Disoblige]

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?

The answer more or less is no.

It's better to have a lower monthly % usage with a higher credit limit, than thinking the high limit will negatively affect you.

As mentioned already, you typically only get offers to increase your credit when you are using a higher percentage of your credit limit. Increasing your limit in almost all cases only helps your credit score if you consistently pay it off. Once you increase that limit, you won't be asked to increase the limit again until you reach that percentage of usage again.

In short, if you're a responsible person, increasing your credit limit is a good thing.

[max_boost]

Originally posted by Xtrema
I expect to have a working income under 50.

Then I should have spent all my retirement savings by 70.

The I will liquidate all asset and live in some posh retirement community until 90.

Then I expect to blow all the credit cards that have automatically increase and run them to the max, kick the bucket and not paying them a single dime.

Hey Stanford, no life insurance? lol

That was kinda my plan too but get life insurance to cover things lol with assisted suicide I want to get high as fk and then have them end me

[J-hop]

Originally posted by Disoblige

The answer more or less is no.

It's better to have a lower monthly % usage with a higher credit limit, than thinking the high limit will negatively affect you.

As mentioned already, you typically only get offers to increase your credit when you are using a higher percentage of your credit limit. Increasing your limit in almost all cases only helps your credit score if you consistently pay it off. Once you increase that limit, you won't be asked to increase the limit again until you reach that percentage of usage again.

In short, if you're a responsible person, increasing your credit limit is a good thing.

I was wondering about the credit usage thing because I've only once or twice used up 40% my average monthly usage is about 20% which I believe is pretty reasonable?

[Thaco]

Originally posted by J-hop


I was wondering about the credit usage thing because I've only once or twice used up 40% my average monthly usage is about 20% which I believe is pretty reasonable?

ideally you want to keep it around 30 but still pay it off every month, not too much not to little.

[J-hop]

Originally posted by Thaco
ideally you want to keep it around 30 but still pay it off every month, not too much not to little.

Do they look at instantaneous usage do you think? I pay it off twice a month. So in total for that month I use an average of 20% but I would only ever have 10% on at a given time and obviously never carrying over the end of the period.

So you can see why I have no interest in increasing it as I always have 90% room (except before my first pay period as end of the month is when almost all my credit card expenditures are made)

[Thaco]

Originally posted by J-hop


Do they look at instantaneous usage do you think? I pay it off twice a month. So in total for that month I use an average of 20% but I would only ever have 10% on at a given time and obviously never carrying over the end of the period.

So you can see why I have no interest in increasing it as I always have 90% room (except before my first pay period as end of the month is when almost all my credit card expenditures are made)

i think as long as its being used and you're being responsible it's good for you, i do the same, i use it constantly but go in to my bank website and make payments all the time, usually 2-4 payments per month, full payoff.... although i am not doing it for my credit score, i don't really care what my score is, i don't intend to borrow anything any time soon... i have 3 cards with about 30k available total, i just cancelled a few cards worth another 20k, not for credit reasons, just because they were MBNA and since TD bought them their balance transfer promos have been garbage, i took advantage of them back when they were good but haven't seen anything reasonable in years so i just cancelled them.

[killramos]

Man you guys on this forum worry way to much about your credit scores. If you have to worry about credit scores you probabaly shouldn't be borrowing money.

Once it's above the threshold all a bank will ever give a shit about is your last pay stub.

Mountain out of a molehill.

[J-hop]

Originally posted by killramos
Man you guys on this forum worry way to much about your credit scores. If you have to worry about credit scores you probabaly shouldn't be borrowing money.

Once it's above the threshold all a bank will ever give a shit about is your last pay stub.

Mountain out of a molehill.

No mountains were made in the making of this thread.

I'm not concerned about my credit really just curious how the credit card company does things as per the first post of this thread....

I actually have never checked my credit score ever...

[Disoblige]

Originally posted by J-hop


I was wondering about the credit usage thing because I've only once or twice used up 40% my average monthly usage is about 20% which I believe is pretty reasonable?

Yup, using 40% once or twice can be enough for the bank to trigger the option for you to increase, especially when you haven't increased it before or not for a long time.

To clarify, it's not a bad thing to keep it the same, but the bank is giving you the option and there is really no drawbacks to accept it. I would always take it to keep my ratio even lower.

[Feruk]

Originally posted by KPHMPH
This thread blows my mind.

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

There's only one reason I know of. When you're trying to get a mortgage for a house, a lender will look at all the outstanding credit you have and discount that from the amount you could potentially borrow. Could be bad for someone trying to mortgage themselves to the teeth I suppose.

[Thaco]

Originally posted by Feruk

There's only one reason I know of. When you're trying to get a mortgage for a house, a lender will look at all the outstanding credit you have and discount that from the amount you could potentially borrow. Could be bad for someone trying to mortgage themselves to the teeth I suppose.

this is something that could be considered by a lender, but at the same time, its a 5 minute phone call to have it reduced, so i say its better to just take the increases and deal with that if it ever comes in to play.

[Hallowed_point]

They are getting pretty annoying about it. Between my CC/LOC (very minimal balance carried on my CC zero on LOC) they seem to send letters every month or two. Screw off