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Frequent Contributor
aamex
Posts: 283
Registered: ‎04-28-2011

Credit Card Theory

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? 

 

 

Wallet: Fidelity Investment Rewards | BOA Travel Rewards | Chase Sapphire Preferred | Discover More
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

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? 

 

 


 

 

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

 

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.

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Established Contributor
mAndrew1980
Posts: 707
Registered: ‎08-26-2011

Re: Credit Card Theory

LOL at $5.00 cap1.

 

You forgot the $12.00 First Premier with $2,750.00 AF.

Transunion: 713 FICO (5/13/2014) MyFico
Experian: 789 FICO (4/10/12) Lender Pull
Equifax: 695 FICO (1/10/14) MyFico

My cards: Chase United Mileage Plus 7000CL (3/12), CITI Simplicity 1800CL (9/12), Cap1 Platinum 1000CL (2/10), Cap1 Cash back 1500CL (11/11), Apple Barclay's 2500CL (11/11), Discover IT 6000CL (5/13)

My Primary Financial Goal is to put down my utl%.



Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Credit Card Theory


mAndrew1980 wrote:

LOL at $5.00 cap1.

 

You forgot the $12.00 First Premier with $2,750.00 AF.



Lol! 

 

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Established Contributor
fusioncredit
Posts: 614
Registered: ‎10-23-2011

Re: Credit Card Theory


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" :smileyhappy:.

 

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. 


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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Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Credit Card Theory


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" :smileyhappy:.

 

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.

 

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Regular Contributor
Balbanes
Posts: 143
Registered: ‎06-05-2008

Re: Credit Card Theory

CapOne says over 5k, no bk or default reported, and not 60 days late or worse in the last year. Not just a 5k limit.

 

Ex: 657 (fico lender pull)
Tu: 666 fico
Eq: 641 fico
Regular Contributor
Balbanes
Posts: 143
Registered: ‎06-05-2008

Re: Credit Card Theory

[ Edited ]

and 5k also is for loans. Anyone with a car note should qualify. Just need to have it or 3 years.  :smileyhappy:

Ex: 657 (fico lender pull)
Tu: 666 fico
Eq: 641 fico
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: Credit Card Theory


Balbanes wrote:

CapOne says over 5k, no bk or default reported, and not 60 days late or worse in the last year. Not just a 5k limit.

 



$5k with Cap1 or with anyone? 

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Regular Contributor
Balbanes
Posts: 143
Registered: ‎06-05-2008

Re: Credit Card Theory

The wording they have is

 

I have had a loan or credit card for 3 years or more with a credit limit about $5,000.

Ex: 657 (fico lender pull)
Tu: 666 fico
Eq: 641 fico

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