I just received a US Bank Card with a low credit limit of $500. I applied for this card in an effort to get rid of all my low limit cards. I just cut them all up and cancelled them thinking the days of ridiculously low limit cards are over.
My credit score is 723, yet US Bank enclosed a score that read 666 (from a month ago - due to over 50% utilization rate - I paid it down to 17% and my credit jumped to 723 - another discussion...). I have perfect payment history over three years as well.
Anyway, Im very disappointed in this low limit card, which is useless unless I want to go over 50% utilization. I have 4 cards and they are all in the range of $1500-$3000. Not sure why the low limit.
My question is, do I cancel this card so I do not have a low limit card on my credit report or do I wait six months and ask for a limit? Does anyone know the maximum limit they will go to after six months?
1. there's no reason to cancel this card.
2. if you want to ask for a CLI, you can do so right now I think. It will just be another HP.
3. they gave you a low limit because of your scores and high utilization most likely.
4. US Bank does auto CLIs.
I agree with enharu as well! You should keep the card and it will grow with time!