Credit Cards Center Credit cards from our partners
Reply
Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
0

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
Moderator Emeritus
Posts: 14,730
Registered: ‎12-30-2011
0

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 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 693, EQ 8 714, TU 8 710, EX 8 724 (05/27/16)
Goal Score: 700 on EQ 04 (01/01/17)


Take the myFICO Fitness Challenge
Moderator Emeritus
Posts: 14,730
Registered: ‎12-30-2011
0

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." Smiley Sad

 

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

Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 693, EQ 8 714, TU 8 710, EX 8 724 (05/27/16)
Goal Score: 700 on EQ 04 (01/01/17)


Take the myFICO Fitness Challenge
New Contributor
Posts: 77
Registered: ‎03-20-2011
0

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.

Blogger
Posts: 3,367
Registered: ‎10-19-2012
0

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

Valued Contributor
Posts: 2,121
Registered: ‎03-30-2012
0

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: $5000 | Barclaycard Arrival World MasterCard: $1000 | Discover IT: $2500 | Amazon Rewards Visa Signature: $1500 | Chase Freedom: $1500 | Capital One QuicksilverOne MasterCard: $1950 | Target: $2200 | J.Crew $21,550 | Marvel (Captain America) MasterCard: $6000
Frequent Contributor
Posts: 367
Registered: ‎06-02-2008
0

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
Blogger
Posts: 3,367
Registered: ‎10-19-2012
0

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
0

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

 

Valued Contributor
Posts: 1,339
Registered: ‎09-11-2012
0

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%

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.