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 :rofl:

[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 :rofl: 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!!
:rofl: :rofl: :rofl:

[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.
http://www.picslyrics.net/images/135830-chris-brown-yeah-3x-girl-i-wanna.jpg

[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!

[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. :rofl:

[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. :rofl:

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 :rofl:

[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. :dunno:

[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. :dunno: 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 :poosie: