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URL:  http://boards.fool.com/on-wed-23-apr-97-183000-0600-indianajones-10002108.aspx

Subject:  Re: How to get higher credit Date:  4/24/1997  1:03 AM
Author:  bry Number:  15 of 308881

On Wed, 23 Apr 97 18:30:00 -0600, indiana_jones wrote:
<<What are some good stategies to increase your credit cards purchasing power.

>>

Well, sometimes you can just ASK them to increase your
credit line. Or if it's just one big purchase you
need to make, they may be willing to give you a one-time
allowance.

But if you're already at the limit of what they want to
risk on you, to get a higher credit line, you need to prove yourself as a trustworthy credit risk over a long period of time (2-3 years, if not more).

How do you do prove yourself to be a good risk? My ideas:

1 - Pay your balance off in full every month. This shows you can be responsible with your credit and you pay off
your debts. If you can do this reliably, you will be offered far more credit than you should ever need (or dare use). For example, I did this throughout my college years and got from a single co-signed $500 credit limit card to multiple cards, including a gold card with a $5000 credit limit, while I was still in school, with less than $8K/yr income!

2 - NEVER, EVER, EVER, miss a payment!!!!! If nothing else,
send in the $15 minimum payment, and make sure it's on
time. I suspect this is far more important than #1, especially since they make a lot of money on people who
only pay off the minimum due. Don't miss payments on car loans or store credit plans, either: they all go towards your credit record. Reason: missed/late payments scare
the bejeesus out of lenders because they start to wonder
if you're reliable enough and if they'll ever get their
money back.

3 - Don't have too many credit cards and other loans. If
you have more than 4-5 credit cards, it may look like
you could over-extend yourself if you were to max them all out. Consider getting rid of a few if you have a lot
of them.

4 - Even if you can't pay off every balance in full every month, try doing it with ONE card (while making at least the minimum payments on the rest, on time). This will give you some of the same benefits as #1, and should boost your
chances of getting a bigger credit line at least with that
one card.

5 - In general, pay down as much debt as you can. Think
of all the money you owe on credit cards. Divide that
by your yearly salary. How big a percentage is it? If
it's a large percentage, they may be unwilling to increase
your credit line. Also, do the same thing, but totalling
the max credit lines on all your cards, and figuring that
as a percentage of your salary. If this is a large percentage they also may be unwilling to raise your limits,
even if you aren't using the credit (see #3).

6 - Instead of buying something and then paying it off on the card over months, save for it first, keeping the money in savings account or money market account. Then buy it with the card, and pay it off in full when the bill arrives. While you've had to wait longer to buy, you've been getting interest on your money instead of paying interest on it in the meantime, and it looks good on your credit record.

Good luck!
-bry

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