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Valued Contributor
Posts: 2,300
Registered: ‎01-22-2012
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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.
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Registered: ‎12-30-2011
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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 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 693, EQ 8 685, TU 705, EX 709 (02/27/15)
Goal Score: 700 on EQ 04 (01/01/16)


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Moderator Emeritus
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Registered: ‎12-30-2011
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Re: Benefits of high Credit LImits?

[ Edited ]

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." :smileysad:

 

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

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 693, EQ 8 685, TU 705, EX 709 (02/27/15)
Goal Score: 700 on EQ 04 (01/01/16)


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Registered: ‎03-20-2011
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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.

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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! :smileyhappy:

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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! :smileyhappy:


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

Scores 1/12/2014: TU FICO: 660 | EQ FICO: 665 | EX AMEX FICO: TBD

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Re: Benefits of high Credit LImits?

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


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Re: Benefits of high Credit LImits?

[ Edited ]

somnipotent wrote:

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


:throwingthewhitetowel:

New Member
Posts: 3
Registered: ‎04-09-2013
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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!  :smileyhappy:

 

Valued Contributor
Posts: 1,339
Registered: ‎09-11-2012
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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!  :smileyhappy:

 


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%
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