tooshy said:

<< with all due respects to OP, what is the advantage of having a higher credit line except to achieve a higher credit score? Sometimes having too much credit available may count against you when applying for collateralized loans. I guess my point is if you don't need it perhaps don't get it. >>

The people who have accumulated credit most agressively this forum have largely proven that "too much available credit" has NOT impeded them in any way. Surely some people have been denied loans based on this factor, but its usually in conjunction with other circumstances (low income, actual debt carried on those lines, etc).

OP's Item "C" in his first post is probably the biggest benefit - if a lender sees that several creditors have "trusted" them with 20-40k lines, you will be viewed as a premier applicant and it may be easier to breeze through qualification for other loans....of course, that only benefits those who actively use credit, for investment purposes, building businesses, and such...

"Joe American" ,whose only need for credit is buying a car and a house (and not needing credit again till he moves or buys a new car) neednt concern himself with these strategies.

Can any comment on how easy/diffult it is to consolidate cards at First USA/Bank One?

Only one card for me to talk about in this thread:

AMEX Platinum Business Card w/ $100,000 Limit: Originally an AMEX Gold Card with a $10,000 CL. Got invited and accepted to the Platinum. Kept charging 5 figures monthly on this card. Eventually, the CL raised somewhere around $25,000. Then it kepts going up and up. Finally, there was this point where I needed to charge $150,000 this one month to take advantage of the Membership Reward Points, and couldn't unless I wired them some money.. so I did. After that, I think the trust was there, and my CL was raised to the max the card would allow.

SIS wrote,

<< It sounds like there's a definite advantage to consolidating AMEX CLs, since when one line gets low, they seem to quickly offer to increase it with a BT! >>

I agree.

<< Given recent AMEX threads and the requests for docs, though, Im hesitant to combine my AMEX limits since all are now near $20k. >>

Your point is well taken, but I'm not overly worried about this happening. It looks like the scrutiny some received was tied to particular factors, like an abundance of BVG claims. In any case, I've had no problems since requesting that the extra $20K be moved to the Cash Rebate card.


tooshy wrote,

<< what is the advantage of having a higher credit line except to achieve a higher credit score? >>

See the OP. You're more likely to have higher limits approved, giving you a better shot at promotional offers and less damage to a credit rating when you want to exploit them. SIS is right that Joe American won't be as effected...but then again, wouldn't he benefit from a high score? And as discussed many times, in the very unlikely event a loan were denied to him on the basis of too much unsecured credit, he could (a) find a lender who'd see his responsible use of that much credit as a plus, or (b) simply close down some of the lines.

Keep in mind that while LONG rates are going up, SHORT rates might stay where they are for awhile yet. Greenspan still thinks risks of deflation outweigh inflation, and given how anxious he is to curry favor with GWB, I don't expect rates to jump much if at all before Nov 2004.


Azurik, congrats on the high limit. That business line won't help you in most of the ways discussed here, since it won't report on your personal credit. OTOH, it will beef up the standing of your business credit.

tooshy: I think that higher CC limits can often HELP you get loans these days, rather than hurt.

Aside from obvious reason (boosting a credit score), many lenders--especially of the online and low-overhead variety--seem willing to suppose that if you have several high-limit cards, you've proven that you have sufficient resources (and financial responsibility) to pay the loan.

While I don't know of anyone with lending authority who has actually gone on record with this, I do know that on 2 occasions in the past two years, I haven't even been asked for income documentation, where friends and associates were asked (and sometimes rejected as a result). Since all they had was my full credit report (and in one case my self-disclosed financials, without supporting documents), I'm assuming that they decided it wasn't needed.

<< I don't know of any recent experience to prove contrary so I will defer to our forum experts, DH and SIS >>

LOL. This is one area where I feel I've HAD to become something of an expert--because my investment and business endeavors were stymied whenever I didn't study the prevailing rules closely. My credit score has dropped for all kinds of silly reasons in the past 4 years--once to 570!--and I want to make sure that I can pull together real estate deals, open new accounts, and even make judicious use of 0% BT offers without EVER having that happen again!

First USA Visa, credit limit of $43,900. Opened in 1990 or so. They have steadily increased this credit limit over the years even though I have never requested an increase, used a balance transfer, or had a balance over about $5,000.

One exception to the #4 reason added by SIS, in my experience, is Capital One.
I have been routinely charging ~90% of the credit line on that card and never got any automatic CL bumps. I've had this card for >5 years and a credit history longer than that.
I need to add that I never asked for any increases either.

On another note, similar to DH's reason #3, department stores usually are willing to give higer CL on their store cards if you apply when making a large purchase. Some stores have their own brand card, which are usually not useful for the "strategies", but many stores (such as Sears) are offering VISA or MC that may be of some use.

DaveHanson said:

<< SIS wrote,

<< It sounds like there's a definite advantage to consolidating AMEX CLs, since when one line gets low, they seem to quickly offer to increase it with a BT!Given recent AMEX threads and the requests for docs, though, Im hesitant to combine my AMEX limits since all are now near $20k. >>

Your point is well taken, but I'm not overly worried about this happening. It looks like the scrutiny some received was tied to particular factors, like an abundance of BVG claims. In any case, I've had no problems since requesting that the extra $20K be moved to the Cash Rebate card.
. >>

Given the numerous problems noted by FW members, I now recommend one does NOT attempt consolidating/shifting of AMEX Lines, and further recommend that AMEX users who dont normally have a credit limit over $20k do NOT attempt to "create" one through a BT offer or consolidation.

exactly, with AMEX's current procedures I think its now best to very cautious with them....

SUCKISSTAPLES said:

<< SUCKISSTAPLES said:

<< exactly, with AMEX's current procedures I think its now best to very cautious with them.... >>

of course, i havent listened to my own advice and just applied for 3 new AMEX cards! >>

I'll bite, which AMEX cards?