$5,000 limit threshold question

[MyLoFICO]

I see a lot of threads here where people comment about card limits over $5k meaning something. Like maybe it helps you get bigger and better cards. I got bored today at work and was reading about all you appers and I decided to try a CLI on Lowes since it’s a SP. I was extremely shocked to get my $5k limit increased to $12k. This is now my highest card and the only one to pass the $5k threshold. Will this count as an “over 5k limit card” and help me get those better cards? Or does it have to be a major card?

[MyLoFICO]

One more thing...I have tried my other sync accounts a week or so ago and got the CLI's denied. My TU score has gone up since then. Should I try to CLI them all again now? Or, atleast the ones I intend to keep?

[happypill]

$5k is kind of a mythical level because it is often the threshold for Visa Signature and World MC/WEMC.  People like those levels even though the cards often don't provide additional usable benefits for most people.  Also, many lenders vary from the levels and it's possible to get such cards with much lower CL.

Another reason is that lenders sometimes cite "lack of experience with $$$ limits" as a factor in denials.  So, if you want to get a $25k or higher card sometime down the line, the lender might want to see that you've been successful with a $5k limit first (not always the case).

Your Lowes bump to $12k defintiely qualifies.  The next step would probably be to seek a VS/MC/Amex with CL over $5k.

[MyLoFICO]

I have apped too heavily so the majors will have to wait. I am so far in the garden I can’t see the gate. However, both my QS1’s are prime for PC so I am hoping this helps. My newest of the 2 turns 6 months old next month and the other one is almost 6 years old so I am hoping to see a QS or Venture in the prequal shortly after. I will hit them up for a CLI, PC, and then Merge at that time.

[Loquat]

---

@MyLoFICO wrote:

One more thing...I have tried my other sync accounts a week or so ago and got the CLI's denied. My TU score has gone up since then. Should I try to CLI them all again now? Or, atleast the ones I intend to keep?

---

You can try but I've learned that what Synch will do for one account, they may not do for the other.  CLI on one account doesn't mean the others will see the same love.

[Chris679]

In my experience higher limits help you get other higher limits but not everyone agrees.

[MyLoFICO]

I did it. Had pretty good luck too. 

http://ficoforums.myfico.com/t5/Credit-Card-Approvals/Wanted-to-app-but-tried-for-CLI-s-instead/td-p...

[Anonymous]

Not sure but I have a QS and QS1 one with 2000 limit and one with 3000. Applied for another QS and venture got QS at 8000 SL and venture at 15000. Still have my secured card from 11 months ago at 500 limit

[MyLoFICO]

I have a recent new cap 1 card so I think the prequal page is blank because of the 3 or 6 months rule or whatever they have. I am tempted to app for a Venture or regular QS but I just don't know. I am not sure if Cap1 is sensative to inquiries or not but I have a few. 

[takeshi74]

---

@MyLoFICO wrote:

I see a lot of threads here where people comment about card limits over $5k meaning something. Like maybe it helps you get bigger and better cards.

---

It really doesn't mean as much as it's made out to be.  As stated above, Signatures used to all be above $5K but that's no longer the case.  It's not just about limits.  Limits factor into Revolving Utilization which itself factors into Amounts Owed which is just one factor considered by FICO models.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Of course, that's just FICO and a creditor/product's underwriting is an entirely separate matter.  We don't know the specific for any creditor/product.  It's certainly possible that some creditors may see limits above $X as favorable but we would just be speculating on the matter.

"Higher limits begets higher limits" is a popular meme but it's an oversimplifcation.  Any limit is set based on what one's entire credit profile and income qualify for.  One doesn't have to have a high limit card to get a high limit card or else no one would ever be able to attain one.  When I got a $25K card my highest limit at the time was about $7.5K.  A high limit card doesn't mean that all subsequent cards will have high or similar limits.  It all depends on credit profile and income versus the creditor/product's underwriting critiera.  For example, I've had a $30K card from PenFed since 2013 as well as several other $25K and $20K cards.  However, a number of new cards for me since then have started out at $5K.

Creditors do not simply match limits.  Higher limits can help but they're not going to lead to future high limits on their own.   It's really more a matter of Revolving Utilization but all factors matter.

---

@MyLoFICO wrote:

I decided to try a CLI on Lowes since it’s a SP. I was extremely shocked to get my $5k limit increased to $12k. This is now my highest card and the only one to pass the $5k threshold. Will this count as an “over 5k limit card” and help me get those better cards? Or does it have to be a major card?

---

Don't put so much into the $5K threshold.  The Lowe's card is a revolver just like any other revolver in how it is assessed.

---

@MyLoFICO wrote:

One more thing...I have tried my other sync accounts a week or so ago and got the CLI's denied. My TU score has gone up since then. Should I try to CLI them all again now? Or, atleast the ones I intend to keep?

---

It's never just about score.  What were the denial reasons?  Were they addressed by the report updates that lead to the scoring increase?

---

@MyLoFICO wrote:

I have apped too heavily so the majors will have to wait.

---

Your recent credit seeking activity is a consideration as well.  Based on what I can see (which isn't much so this is just a guess) it's probably a concern for most creditors.