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Amex: How Long Should I Wait Before Requesting A Credit Limit Increase?

SeaJay 455 81 April 10, 2014 at 09:05 AM in Finance (2)
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I just received an Amex BCP card this week in the mail - it's my first Amex card. The approval was instant, but the credit limit is pretty low, at $2,500. Since I want to use it at least for now as my "go-to" card, my utilization is going to be high (I'll pay it off every month, but still).

How long should I wait before I request an increase in the credit limit? To compare, my other credit card, a VISA card, has a $10K limit, but I don't get any cash-back or other rewards for using it. Last time I checked (before applying for the Amex) my credit score was about 800.

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#2
Quote from SeaJay View Post :
I just received an Amex BCP card this week in the mail - it's my first Amex card. The approval was instant, but the credit limit is pretty low, at $2,500. Since I want to use it at least for now as my "go-to" card, my utilization is going to be high (I'll pay it off every month, but still).

How long should I wait before I request an increase in the credit limit? To compare, my other credit card, a VISA card, has a $10K limit, but I don't get any cash-back or other rewards for using it. Last time I checked (before applying for the Amex) my credit score was about 800.
Wouldn't waste a credit pull on a credit line increase. Go find a cc with an offer you like and use the pull on that.
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#3
Quote from WildChickenDanc View Post :
Wouldn't waste a credit pull on a credit line increase. Go find a cc with an offer you like and use the pull on that.
Since the card was *just* issued, they just did a hard pull. I was wondering whether by asking for the increase sooner rather than later, I could avoid another hard pull. However, I wasn't sure if they'd consider an increase right away.
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#4
Quote from SeaJay View Post :
Since I want to use it at least for now as my "go-to" card, my utilization is going to be high (I'll pay it off every month, but still).
I am guessing there is a reason they only gave you a 2.5k CL, so unless you are going to tell them a higher income they may not raise. But if they see you using and paying they will bump the limit.

I suggest paying it off more than once a month, maybe once a week or every two weeks to keep your utilization low.
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#5
They usually won't honor a request until you've had it opened for 6 months. Asking for a credit line increase might cause your score to go down a couple points because of the hard pull. But that is offset in the long run by your higher line of credit and better utilization percentage. People put way more emphasis on hard pulls than is really needed. Unless you are applying for credit cards every other week there is no need to be concerned about them.
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#6
Quote from Spazzzoid View Post :
They usually won't honor a request until you've had it opened for 6 months. Asking for a credit line increase might cause your score to go down a couple points because of the hard pull. But that is offset in the long run by your higher line of credit and better utilization percentage. People put way more emphasis on hard pulls than is really needed. Unless you are applying for credit cards every other week there is no need to be concerned about them.
It messes up my plans a little bit is all. I only have one Visa card that I've had for about 15 years, and a line of credit with my bank (both $10K). My visa card has a low APR but doesn't give rewards or cash back. I wanted to get 2 new credit cards to start using for daily purchases so I could start to get some cash back (both cards will be fully paid off monthly). This Amex was card #1, and I'm hoping to apply for a Visa with a good cash back rate for restaurants (since I eat out a lot) as card #2. I was planning on applying for the Visa in 6 months, so messing around with the Amex credit limit will likely have to wait a year, since I want to space the hard inquiries out a bit.

I got a car loan in 2012 and a mortgage in 2013 (actually lowered my housing costs since my mortgage is several hundred dollars less than rent was). So I need to be mindful of the hard inquiries that were generated from those. The number of inquiries were minimized as much as possible, but they are still hard inquiries that haven't dropped off yet.
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#7
they have an automated credit limit increase via phone call (only asks for self-reported income and i think possibly does a soft pull), but i think they specify that you can only request one every six months. i'd guess the initial application would count, so pay it off every month for six months and then call the number.
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#8
61 days
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#9
Quote from DPG5 View Post :
61 days
This.

When I got my BCP card I got a initial CL of $3k. I waited till the 61st day and requested 3x my CL which is recommended on a bunch of forms and was approved.
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#10
Thanks everybody for that 61 day advice. Googled 61 days and American Express and came up with lots of info:

Summary:
- 61 days after the date the account was OPENED (not approved), is when you apply (prior to that results in automatic denial)
- Make sure your balance is paid in full those first 60 days
- Results in a soft pull
- Request 3x your current limit (more is usually declined)
- Don't go over 30% utilization in that first 60 days
- They may request supporting documentation for CLs above $25K
- If they decline the request to increase your CLI, you can try again after 181 days after account was opened
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#11
1. I typically go by the rule request every 6 months.

2. Check to see if your existing issuer for the VISA card is willing to convert the card to another card. Some issuers will do this. Your credit limit and history transfer to a new card type. If they allow it (not all do), usually the only major diff is the term differences between the cards and whatever the new APR may be. Some times its better, some times worse. Alternatively you might even qualify for intro APR by converting the card.

If you plan on paying in full each month, changes to APR won't matter much so given that, the second scenario is ideal if they are willing to convert to a rewards card for you.
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#12
pay it off early (before the statement even comes in) to keep utilization low
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#13
I would spend what up to about 2K a month for 2 billing cycles then see about getting a line increase if you did not go over 30% utilization why would you want an increase in your credit limit that part of the advice does not quite make sense?
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#14
Quote from SeaJay View Post :
I only have one Visa card that I've had for about 15 years
Maybe call and ask if there is a rewards program that the card can be upgraded to.
I did this with my oldest card (Cap1) and they changed it to a Quicksilver. I also have a bank of omaha credit card that is a rewards card. So even non-mainstream banks have reward programs.
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#15
Quote from 0mega View Post :
Maybe call and ask if there is a rewards program that the card can be upgraded to.
I did this with my oldest card (Cap1) and they changed it to a Quicksilver. I also have a bank of omaha credit card that is a rewards card. So even non-mainstream banks have reward programs.
It's a credit union Visa. The best I could hope for at that credit union is a Visa card that offers 1% back on everything. What my exisiting card does have going for it is a very low interest rate, which means more to me at the moment as it's carrying a small balance (for dental work mostly). I think as a daily go-to card I can do a lot better than what my credit union offers. However because it's my oldest credit card, I'll never cancel it.

What I'm looking for now is something to use and payoff monthly for my everyday expenses. Most lenders offer better cash back options than this credit union does.
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