How Did You Get Enough Credit on Your CC?

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jeanpaul1979

jeanpaul1979

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Dec 30, 2007
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Hey all, I'm kind of "struggling" with this. I have been doubling my business about every 2 months so far, so costs are rising fast. But for the credit card company that means no financial history to back those new spending amounts up.

Up till now I've solved this by depositing cash on my Amex card but they say that can't go on forever because they're not supposed to do that because they are not a bank.

Someone must have gone through this before, how did you deal with this?
 


also apply more credit card.

i have a chase CC. Spend like 6k in the last 6 month and pay everything on time and decline my request to raise my credit line (only have a $500 credit line now)
 
Yeah I can pay it off, it's just a hassle to keep check on that all the time. But about a second card, that's an option I can explore further, they do allow that.

Anyway, I think I will probably end up paying it off all the time, that's the only way I know of that makes this work right now. I was hoping for some way around but I guess there isn't. Not complaining though :)
 
You have a couple of options.

Option 1: Call customer service and ask for an increase. If you have a good payment history they'll most likely give you a jump, like Keenan said from $3,000 to $10k. The problem is with their criteria, they want you to keep your balance under 50% of credit limit, in which case they may not look at you favorably .

Generally they'll let you fax in a copy of your bank statement. Make sure you have at least 25% of what you're asking for sitting liquid in an account. I.e. if you're asking for a 50k limit, have about $15,000-20,000 in your account when you fax them your bank statement.

Option 2: Google AdWords Credit Line. I personally have a $200,000 line of credit with Adwords, which helped as I was ramping up my spending. Sure, you don't get amex points and all that fun stuff, but it really helps if you're spending thousands of dollars per day and your credit card can't keep up.

Another benefit to doing this is you can have more funds available on your amex to fund your other advertising channels (adCenter/YSM/etc).

Obviously Amex is ideal, if you can get your credit limit where it needs to be, but you can check out more on the adwords credit limit here:

http://adwords.google.com/support/bin/answer.py?answer=6392&topic=10633
 
Thanks aim, +rep for your helpful comment.

Can you tell me, what do you mean with this? "The problem is with their criteria, they want you to keep your balance under 50% of credit limit, in which case they may not look at you favorably."

Do you mean they want you to have $20K in your account to get $10K credit? Because that's the idea I got from them, and it's the problem as well. But what you say here: "I.e. if you're asking for a 50k limit, have about $15,000-20,000 in your account when you fax them your bank statement." contradicts that so I'm confused.

P.S. I only have 3 months of history but it's all good.
 
It all comes down to what you say your household income is. You can lie, and hope you are not Financial Review'ed (google: amex financial review), and get whatever increase you want (almost).
 
Household income? I live alone and I keep all my big money in my business account to reinvest.

Do you mean that "figuratively speaking" if I say I pay myself 10K and keep 1K for my business I'm better of then when I say I do it the other way around? Either way, they want proof but I can wire stuff around if that pleases them :S
 
I had my CC reciprocally linked to my cash account a while back. Pays everything off in 5-10 minutes automatically... 3 months later, I get a letter from MasterCard asking if I want them to send me a pre-approved Platinum and one from Visa asking if I wanted a "black" card...
But I try to avoid using my regular CC for purchases related to this sort of stuff as it's borderline legal in some instances.

I usually go and buy the anonymous upfront Visa's from ANZ nowadays, lay $1000 on one and use it up as I need to.
It's great getting bills in the name of "Gift Cardholder"
 
jeanpaul1979 said:
Can you tell me, what do you mean with this? "The problem is with their criteria, they want you to keep your balance under 50% of credit limit, in which case they may not look at you favorably."

Do you mean they want you to have $20K in your account to get $10K credit? Because that's the idea I got from them, and it's the problem as well. But what you say here: "I.e. if you're asking for a 50k limit, have about $15,000-20,000 in your account when you fax them your bank statement." contradicts that so I'm confused.
Click to expand...

Sorry about the confusion. When I'm referring to keeping your balance under 50%, I'm referring to the balance vs available credit on your credit card - not your bank account.

Say for example you have a $3,000 limit, and you are essentially running at 90% of your limit because you keep spending it and paying it off. To the credit card companies, the fact that you're so close to your credit limit is considered risk to them - it seems backwards, but something to keep in mind.

Regarding asking for a limit increase, I'm talking about balance in your checking account (liquid capital) - not the balance on your credit card. In which case, if you're current limit is $3,000 and you ask for an increase to say, $20,000 they are probably going to ask for you to fax them your bank statements. Your statements should reflect a running balance of somewhere around 10,000 each month - basically they want to minimize their risk and see that you can afford the increase.
 
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