CL's & Income related?

[Evel_Knievel]

I keep seeing a LOT of people with high credit limits. I'm sure some have worked hard for these. Yet you see many people with very low credit limits.

Are credit limits directly tied to income, or can they increase dramatically with credit history?

I guess what I'm getting at is if someone with say a $45K income is likely to remain stuck with low CL's even with good payment/credit history?

[-NewGuy-]

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@Evel_Knievel wrote:

I keep seeing a LOT of people with high credit limits. I'm sure some have worked hard for these. Yet you see many people with very low credit limits.

Are credit limits directly tied to income, or can they increase dramatically with credit history?

I guess what I'm getting at is if someone with say a $45K income is likely to remain stuck with low CL's even with good payment/credit history?

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It has does have an impact on CL. How much is up for debate. And I would imagine also scored differently by each lenders algorithms.

[user5387]

It's possible to have high limits with relatively low income.

High scores are one way to break down barriers to high limits.

[poops]

Income does play a role - direct and indirect. It also factors into Debt-to-income (DTI) ratio.

You can have a high income with a high DTI which might yield a low credit line. High income and low DTI most likely yields the highest credit limits. Low income and low DTI will provide a more than decent credit line... Get the gist...?

[mirachi]

Lol depending on what you consider to be high limit? Depending on lender, the max CL they give you would probably be a % of salary (40-55?)....if you're referring to overall CL (through multiple companies), you could get at least 2x salary....

I'd assume CL is based on high credit scores, established payment history and assets that you have with them (savings/checking account, for example)

[jetsfan2013]

From what I can tell, it appears score > income 

A clean report with a high score, low inq, and no baddies w./ moderate income can yield a much higher CL than someone making six figures, fair credit, baddies, high inq, etc.

[B335is]

Most lenders are reluctant to issue someone a disproportionately higher limit than what they already have.  Sure, there's exceptions, but generally they're going to look at the big picture - income certainly has some impact on that.  Income, debt, payment history, inquiries, average account age are all factors I would assume go into the equation.

[DerekD]

Well is depends on what you consider high limits. Im 19 and make slightly over 30k a year and these are my cards

Chase freedom 1.5k

CSP 8.5k

Amex BCE 3k

Amex Everday 10k

Merrill+ 5k

Discover 2.5k

I would hope that even though my income isn't high over time and good payment history I can still go higher than this when I ask for CLI's

[Anonymous]

DerekD - not to shabby! You are doing well. Takes time to develop a credit file and AAoA. You are doing it.

[Evel_Knievel]

Well is depends on what you consider high limits. Im 19 and make slightly over 30k a year and these are my cards

Chase freedom 1.5k

CSP 8.5k

Amex BCE 3k

Amex Everday 10k

Merrill+ 5k

Discover 2.5k

I would hope that even though my income isn't high over time and good payment history I can still go higher than this when I ask for CLI's

I consider those high CL's. Lol

Very well done!