Originally Posted by
italdesign
Before you think I'm pushing the envelope on something lucrative, what actually happened is they gave me a puny $700 CL on a business card. I can barely meet the minimum spend with that. If I were to cycle this puny CL 2-3x in a month, do you think it may be dangerous for account closure (which has happened before with large CL cycling)?
The reason you have a low credit line is that the bank considers you a credit risk, just not enough of a risk to deny you outright for their card.
I presume that this card is new. Just like the new employee on probation for the first 90 days, your bank has you on probation for use of their card. If you cycle your card, it's just like coming in late 4 days out of 5 in your probationary period. The bank has eyes on your account, and one way to raise a flag is to cycle your account.
The reason cycling is bad is that the bank gave you a limit for a reason....their reason. They don't want to put large sums of money at risk on a new account, especially one where they were less than thrilled about granting any credit in the first place.
i can almost assure you that if you cycle your $700 CL, they may warn you but most likely they will just shut you down. Furthermore, if you have other cards with them, those could go as well. And it is not unheard of where the bank just jettisons you completely.
My suggestion is to call them and point out the fact that it will be impossible to reach a $5000 spend in 3 months with a $700 CL. Ask for more time. If they say no, all you can do is close the account and chalk up the event as experience.
