Accepting low account limits?

[icyhot]

Citi doesn't allow completely rolling over the limit to another card. You can move some over, but you would still have to leave some of the limit on it

[Anonymous]

I wish somebody would bruise my ego with a $10K starting line.

[longtimelurker]

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@Anonymous wrote:

I wish somebody would bruise my ego with a $10K starting line.

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Congratulations CAPTOOL!   LongTimeLurker Bank is pleased to offer you our TRIPLE-SECURED Card with a starting limit of $11K!!!!  Our Triple Secured policy simply means that you deposit $33K with us and you then have access to your full $11K limit.   Then, buy things in the usual way with ANY card, check or cash, send us the receipt and we will reimburse you within 3 months.   Safe, convenient and secure!

[NRB525]

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@Anonymous wrote:
I haven't ever taken that step to provide income verification. I suppose I could-- is there a semblance of the formula that is known to us regarding how income affects how credit lines are determined? I realize there are many factors. I'm not in a super rush to get this done, I just want to make sure I'm taking the correct steps which is why I posted this thread; I was concerned I would me taking a misstep by taking the new 10k card. Should I wait until I have a "big" year to offer income verification? And do you know if that's something I would have to continue to do periodically?

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I would suggest it does not matter what others' experience is. You already clarified you are happy with the specific cards you have, so the next phase of your journey should not be to distract yourself with other apps, but to invest those HP toward your real goal, growing these specific cards.

This method probably works in your favor simply because having that focused short list of cards makes the lenders more confident you are serious about continuing to use the same few cards, so if they can keep your business with higher CL, they are likely to do that.

[Anonymous]

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@FinStar wrote:

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@Anonymous wrote:

>If I take this 10k to get the miles, will this "hurt" my credit score because my average account limit will be lowered because of it? Or does it not matter?

10k is not a low limit IMO.  But if you have been approved, whether you take it or not it will affect your profile.  If you close it, it will still report.

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Agree.  Last time I checked, I didn't realize that $10K was a super low CL starting out (I guess for some maybe)?  Granted, everyone has different credit profiles but...  Must be an ego-driven thing

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+100

[Thomas_Thumb]

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@Anonymous wrote:
I hate to ask such a broad question, but, even being what I consider to be an intelligent person, I can't figure this out. I applied for a new card today because of a bonus offer. I was approved for a CL of 10k. I actually personally don't care what the limit is, I just wanted the miles. I don't "need" the credit. However, if I open this account, it will be my lowest limit bank issued non store credit card. I'm not particularly interested in having a bunch of credit cards with limits in this range, I'd ideally like to have 3 or 4 cards with very high limits, and I know that it takes time and good history and good credit to work up to those limits--

so my question is-- if I take this 10k to get the miles, will this "hurt" my credit score because my average account limit will be lowered because of it? Or does it not matter? I have read conflicting reports on this subject and I find it maddening that there doesn't seem to be a definitive answer. I have closed 3 low limit accounts within the last month; should I have just kept them open? Does it matter or does it not matter how much your limits are individually as opposed to the total? And lastly, someone told me that moving exposure between cards at the same bank was not allowed; is that actually true? My strategy had been to get this card, get the miles, and then close it moving the exposure to another card within the same bank; which is why I didn't care what my limit was. But if I'm going to be stuck with it, I just don't know what is best for my credit score overall. Thanks.

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If you applied for the card, you likely got a HP. If you think you may use it and it has some benefits, keep it. You can always go for some CLIs at a later date. 

Note 1: The actual credit limits of your cards absolutely do not influence Fico scores - only UT% individually and in aggregate is a factor.

Note 2: Credit based insurance risk scores do factor in average CL of your cards (both TransUnion and LexisNexis do). These scores can affect property and auto insurance premiums. With TU an average CL of $9k or more is top tier for this factor. At LN top tier is around $10.2k.

http://www.fmins.com/PublicDocs/pdf/FI/Auto_Property_Reason_Codes.pdf

https://consumer-solutions.custhelp.com/app/answers/detail/a_id/2523