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Benefits of high Credit LImits?

Valued Contributor

Re: Benefits of high Credit LImits?

Having high CLs help when you're trying to apply for new cards, which most people will do at some point. A new lender will generally use your income and current CLs as major indicators as to what CL they should give you.
EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Message 11 of 21
Moderator

Re: Benefits of high Credit LImits?


jamesdwi wrote:

Revelate wrote:

Unless you're already using all the credit you have available anyway, why should you need a CLI?  That falls under the convenience factor, not having to pay multiple times a month being the biggest one.

 

Yeah, there's certain cards (Visa Signature ones, the CSP for example) where you may be excluded if you're sitting with a bunch of toy limits, but those cards are pretty few and far between.  Also, I would strongly suspect that many folks who had been denied for CLI's for that reason, probably had some other underlying reasons which weren't shared with them, or weren't shared with us.

 

The entire forum has to be taken with a little bit of a grain of salt sometimes with lender responses: our actions are easily three standard deviations outside normal credit application and use.  

 


If you come close to doing tht you wont get a prime lender to give credit to buy a piece of toast. Maxing out a single card is hit on your FICO,  maxing out all your cards is a death sentence, note that to lenders  maxing out your card is a balance of more than 80% of your availble credit. 

 

if you have a $1000 card and want to treat a couple of friends to a dinner out at a nice resturant that $600 charge can  take a real chunk out of your FICO score despite the fact that you PIF the next morning the day your statement cuts. 


In my case I don't live paycheck to paycheck: it's no problem for me to simply transfer funds to cover it a day or two *before* the statement cuts, and voila, the balance never gets factored into the revolving utilization metric.

 

Even in your example the larger CL is a convenience factor.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


Take the myFICO Fitness Challenge
Message 12 of 21
Moderator

Re: Benefits of high Credit LImits?


CreditScholar wrote:
Having high CLs help when you're trying to apply for new cards, which most people will do at some point. A new lender will generally use your income and current CLs as major indicators as to what CL they should give you.

In which case CL's can count against you too: "you have enough credit already." Smiley Sad

 

CL's are also dictated by how aggressive the given creditor is at the time too.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


Take the myFICO Fitness Challenge
Message 13 of 21
New Contributor

Re: Benefits of high Credit LImits?

I can remember a time getting a denial for the sole reason of, "You have a low limit card on your credit bureau report."  It was a $200 Target card they were referencing.

Message 14 of 21
Blogger

Re: Benefits of high Credit LImits?


treefrogger wrote:

I can remember a time getting a denial for the sole reason of, "You have a low limit card on your credit bureau report."  It was a $200 Target card they were referencing.


That's about the lowest credit limit I've ever heard of. Hopefully they've given you some CLI since then! Smiley Happy

Message 15 of 21
Valued Contributor

Re: Benefits of high Credit LImits?


HiLine wrote:

treefrogger wrote:

I can remember a time getting a denial for the sole reason of, "You have a low limit card on your credit bureau report."  It was a $200 Target card they were referencing.


That's about the lowest credit limit I've ever heard of. Hopefully they've given you some CLI since then! Smiley Happy


I've heard of $150 limit store cards...I think it was Macy's or something. LOL.

Scores 5/15/2016 (clean reports!): TU Walmart FICO: 696 | EQ FICO: 679 | EX AMEX FICO: 680

In my new wallet: American Express Green EMV: PSL $2000 | BankAmericard Cash Rewards Visa EMV: $2500 | Citi AAdvantage Platinum Select World MasterCard: $6400 | Barclaycard Arrival World MasterCard: $1000 | Discover IT: $2500 | Amazon Rewards Visa Signature: $1500 | Chase Freedom: $1500 | Capital One QuicksilverOne MasterCard: $2100 | Target: $2800 | J.Crew $21,550 | Marvel (Captain America) MasterCard: $6000
Message 16 of 21
Frequent Contributor

Re: Benefits of high Credit LImits?

DW has a VS with a $100 limit.  Beat that.


AmEx PRG (NPSL) | AmEx Costco ($8.2K) | AmEx Delta Gold ($19.3K) | AmEx BCE ($5K) | Chase United Explorer ($10K) | Chase Sapphire Preferred ($7.5K) | Chase Freedom ($8.2K) | Discover it ($3K) | Capital One Quicksilver ($2.5K) | PayPal Extras ($2.5K) | Lowes ($3.3K) | Walmart ($4.3K) | Amazon ($2.5K) | Restoration Hardware ($8.8K) | Crate & Barrel ($8.3K)
--
Homeowner since 05/29/13
Message 17 of 21
Blogger

Re: Benefits of high Credit LImits?


somnipotent wrote:

DW has a VS with a $100 limit.  Beat that.


:throwingthewhitetowel:

Message 18 of 21
New Member

Re: Benefits of high Credit LImits?

How about a tie????

 

I just approved for a Walmart Discover card for $150!  I think I should win becasue my card is a credit card!  Smiley Happy

 

Message 19 of 21
Valued Contributor

Re: Benefits of high Credit LImits?


rightrack01 wrote:

How about a tie????

 

I just approved for a Walmart Discover card for $150!  I think I should win becasue my card is a credit card!  Smiley Happy

 


Atleast it's a Walmart Discover, I still have the store card with 7k CL.

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Message 20 of 21