Credit Line Increase?

Xstatic3333 · April 2014

Help me to not overthink this...

I just logged in to manage my Capital One VentureOne credit card (the main one our family uses) and a little box popped up asking if I want a credit line increase. We've been paying it off in full for six months now after killing our consumer debt, and before that we hadn't actually increased our debt in about three years, so I'm confident we're "cured" of gratuitous credit card abuse. The FAQ says it won't hurt our credit scores. We are looking at buying a home within the next year. Our credit scores are already decent. Should I do this to bump them even higher, or leave well enough alone?

hoffse · April 2014

It's up to you. We have waaaaaay more credit available to us than we'll ever use, mostly to keep our spending to credit ratio super low. I have to use our personal credit cards for lots of reimbursable business expenses, and that adds up. I never know how much it's going to be, and I don't want reimbursables to hurt our ratios. Last month I had $1,000+ in reimbursable expenses.

I have requested credit increases at various points to enable us to charge very large purchases using our best rewards cards without maxing out those cards (ie: H's bar exam course, which was $3,000). If you could use the credit increase for the occasional very large purchase, or if you need to lower your spending ratio, then I don't think it hurts (in the grand scheme).

On the other hand, if your spending ratio is fine, and you've never needed to use that card for multi-thousand dollar purchases, then there's really no need. As I recall you're planning on buying within the next 6 months - so if your ratios are good now, I'd probably leave it alone until after you buy just to keep everything stable.

formerlyGDaisy09 · April 2014

Our one card that we use for everyday purchases, and that I'll use for work travel, I'll take a credit line increase when it's offered to make sure that our spending ratio has an extra buffer. This was super helpful this past December when we had the usual uptick in spending around the holiday, our propane tank needed filling, and I had a 5 day conference for work that I ended up charging $1600 for by the time I paid for flights, hotel, conference registration, etc. if I hadn't taken the credit increase I was offered in October that would have totally thrown off our spending ratio.

once you have a house having a little extra buffer isn't a bad idea (who knows when you might need to fix or replace something). but you could always wait until after you close to request an increase.

Wulfgar · April 2014

I got the same notice this weekend. I said no thank you. I have a 3k limit which is more than enough for me right now. My wife also has two credit cards with decent limits if we need it.

Xstatic3333 · April 2014

Thanks all. I think I'll pass-we can already cover things like vacations, non-emergency dental work, car repairs, etc. so there's no real need in our case.

Credit Line Increase?

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