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Established Contributor
Posts: 614
Registered: ‎10-23-2011
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Re: Credit Card Theory


ptr2593 wrote:

fusioncredit wrote:

ptr2593 wrote:

aamex wrote:

Just out of curiousity I'd like to know what the members of this board deem to be a more attractive portfolio:

 

- fewer cards with bigger limits (10k @ amex, 7.5k @ BOA, 15k @ Discover)

or

- several cards with nominal limits (5.00 CapOne, 750 Walmart, 1000 Barclay, 400 First Subprime, 500 AppSpree CU, 600 AppFever Bank)

 

in my (opinion) (assumption) banks would find it more attractive to lend to consumers who have managed higher available credit well. additionally, it opens you up to greater benefits like cash back, points, complimentary flights, etc. also greater AAoA for have fewer new accounts... maybe others have something to add to this.

Lol, this theory that few cards with bigger limits keeps me in the Garden. But who do you all think? 

 

 


 

 

At first I read "normal" instead of "nominal" and was going to reply that those are lower than "normal" Smiley Happy.

 

Anyhow, I don't think that banks, CCCs, or other lenders really care about your CL with other lenders because they know that all lenders follow different guidelines for assigning them.  Also, low CLs don't always mean the cardholder has managed his/her credit poorly, and conversely, a high CL doesn't necessarily indicate good management either.  Though I don't have an example of the latter, I've had this USBank CC for over a year now -- never over the limit, never late, almost always PIF -- and it hasn't budged from the original $500 CL.

 

Obviously every single lender cares about utilization, but I can't imagine them viewing $10/100 much differently than $1000/10,000.


I have to disagree with that statement. Capital One specifically considers someone with Excellent Credit to have or had a CC with $5k limit or higher. Barclays cares about the kind of CL you have with other creditors when they decide on the limit to extend you. I have also been declined in the past for having low limits (under $5k) to qualify for certain PRIME cards. I know there are exceptions so YMMV

 

To OP it's ideally better to have a few cards with high limits than having to manage 10-15 cards with low limits. 



Well there are certainly exceptions to everything.  Cap1 considers someone with a $5k CL with any lender to have"Excellent Credit"?  I know a few people with $5k CLs who have scores below 650 (not awful, but not "excellent") -- I'm not saying you're wrong, I'm saying that if your statement is true, then Cap1 should reconsider how they view credit.  When I got approved for AMEX the only cards I had were J.Crew, US Bank College, and Citi Dividend Plat Select.   At the time my highest limit was (still is) $4k on the Citi.  AMEX offered me $2k, and a month later Freedom offered me $3k.

 

As we all know, with everything YMMV.

 

The limits that you received are in correlation with limits you have with other creditors. Now you can always try to ask for CLI after being approved by calling a back door number. From my experience Citi was the only one to offer me the highest CL because I already had a Sears Card with $5k limit when I applied for cards from them. I have yet to get a $7.5k or $10k limit card but I am working on it

 


Starting Score: EQ 686 10/18/11, TU 689 10/25/11, EX 685 10/11 (Amex Pull)....these are all FICO scores
Current Score: EQ 702 10/24/11, TU 689, EX 685
Goal Score: 750+

Score Update: EQ: 743 (02/03/12) TU: 741 (Walmart 01/11/12), now 761 as of 01/27/12 (Walmart), EX: 741 (Amex 01/04/12)
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Frequent Contributor
Posts: 314
Registered: ‎03-08-2011
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Re: Credit Card Theory


aamex wrote:

Just out of curiousity I'd like to know what the members of this board deem to be a more attractive portfolio:

 

- fewer cards with bigger limits (10k @ amex, 7.5k @ BOA, 15k @ Discover)

or

- several cards with nominal limits (5.00 CapOne, 750 Walmart, 1000 Barclay, 400 First Subprime, 500 AppSpree CU, 600 AppFever Bank)

 

in my (opinion) (assumption) banks would find it more attractive to lend to consumers who have managed higher available credit well. additionally, it opens you up to greater benefits like cash back, points, complimentary flights, etc. also greater AAoA for have fewer new accounts... maybe others have something to add to this.

Lol, this theory that few cards with bigger limits keeps me in the Garden. But who do you all think? 

 

 


When I was approved for my 4th unsecured major card (BofA), and recon'd about the low limit ($500, recon'd to $2k); BofA specifically made a point of listing the current limits of each of my major cards (Visa, MC, AmEx). Note: I had cancelled my $1.5k secured card already, once I got the first 3 unsecured cards.

 

I also have a co-worker, that was recently specifically declined for a card due to "too many 'store' accounts, with low limits". 

 

From what I've seen; having at least one major card (Visa, MC, AmEx, Disc) at or above $1.5k, for over 1  year; seems to instill enough confidence in other lenders, that they'll start giving higher limits. You go up from there. 

 

This is the main reason why I advocate a secured card of $1.5k or more (if you can afford it); over a 'starter' unsecured card, with a low limit. 

 

Using this method (from what I can tell, anyway); my first major cards (AmEx BC, Chase Freedom Visa, Cap 1 MC) all started at $2k. 

TU98 751, EQ 766, EX 766 (Lender)

If at first you don't succeed; Garden for 6 months, then try again.

Work the system. Don't let the system work you.
Established Contributor
Posts: 614
Registered: ‎10-23-2011
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Re: Credit Card Theory


Odiseous wrote:

aamex wrote:

Just out of curiousity I'd like to know what the members of this board deem to be a more attractive portfolio:

 

- fewer cards with bigger limits (10k @ amex, 7.5k @ BOA, 15k @ Discover)

or

- several cards with nominal limits (5.00 CapOne, 750 Walmart, 1000 Barclay, 400 First Subprime, 500 AppSpree CU, 600 AppFever Bank)

 

in my (opinion) (assumption) banks would find it more attractive to lend to consumers who have managed higher available credit well. additionally, it opens you up to greater benefits like cash back, points, complimentary flights, etc. also greater AAoA for have fewer new accounts... maybe others have something to add to this.

Lol, this theory that few cards with bigger limits keeps me in the Garden. But who do you all think? 

 

 


When I was approved for my 4th unsecured major card (BofA), and recon'd about the low limit ($500, recon'd to $2k); BofA specifically made a point of listing the current limits of each of my major cards (Visa, MC, AmEx). Note: I had cancelled my $1.5k secured card already, once I got the first 3 unsecured cards.

 

I also have a co-worker, that was recently specifically declined for a card due to "too many 'store' accounts, with low limits". 

 

From what I've seen; having at least one major card (Visa, MC, AmEx, Disc) at or above $1.5k, for over 1  year; seems to instill enough confidence in other lenders, that they'll start giving higher limits. You go up from there. 

 

This is the main reason why I advocate a secured card of $1.5k or more (if you can afford it); over a 'starter' unsecured card, with a low limit. 

 

Using this method (from what I can tell, anyway); my first major cards (AmEx BC, Chase Freedom Visa, Cap 1 MC) all started at $2k. 


People starting out to build or rebuild credit don't usually have the luxury to secure a card with $1.5k...if they can get a card with Capiltal One and Barclays, they have a good chance of having $1,500 limit on their cards in the 6 months based on their usage and payment history. I have read numerous threads here of people starting with $500 limit Cap One card, getting another $500 in 90 days and then another $500 at the 6 month mark. My brother actually got it up to $1.5k in 6 months. Regarding Barclays I have read some go above the initial $500-$1,000 to $2k or more on recon after being approved. It all comes down to a few factors though like your score and whats on your report but your YMMV


Starting Score: EQ 686 10/18/11, TU 689 10/25/11, EX 685 10/11 (Amex Pull)....these are all FICO scores
Current Score: EQ 702 10/24/11, TU 689, EX 685
Goal Score: 750+

Score Update: EQ: 743 (02/03/12) TU: 741 (Walmart 01/11/12), now 761 as of 01/27/12 (Walmart), EX: 741 (Amex 01/04/12)
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Frequent Contributor
Posts: 364
Registered: ‎08-23-2011
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Re: Credit Card Theory

So going back a few posts to the discussion about what Cap 1 considers excellent credit and loans count as part of the 5k for 3 years right? I have had a loan for 5,500 for 3 years now, even though I just started making payments a few months ago. For a student loan the age would be when I took out the loan, not when I first made payments right?

 

If that is the case after I make payments for a year I would have excellent credit according to Cap 1. Works for me.

FICO Scores: TU: 768 (Jan 2012), EQ: 755 (Jan 2012 Lender pull)

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