Denied Credit Limit Increase - US Bank

[Tim_S]

Approximately 5 years ago, I got a secured credit card through my personal bank, US Bank.  After having the secured card for a couple of years, I was notified by US Bank that I was pre-approved for a US Bank Platinum non-secured credit card through them, so I applied and was approved with a $300 credit limit.  After having the Platinum for approx. 2 years, I was notified that I was pre-approved for a US Bank Cash Rewards card, which I applied for and was approved with a $2,000 credit limit.  After having the new Cash Rewards card for about a year, I requested a credit limit increase on the $300 credit limit Platinum card I've had for about 3 years.  I was denied the credit limit increase due to "derogatory/late payments" from over 5 years ago.  I haven't missed or been late on any payments and have kept my balances low.  Can anyone explain to me why they approved me for a new Cash Rewards card with a $2,000 limit, but then denied me a credit limit increase for my $300 limit?  Baffles me to no end....

[Kevin86475391]

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@Tim_S wrote:

Approximately 5 years ago, I got a secured credit card through my personal bank, US Bank.  After having the secured card for a couple of years, I was notified by US Bank that I was pre-approved for a US Bank Platinum non-secured credit card through them, so I applied and was approved with a $300 credit limit.  After having the Platinum for approx. 2 years, I was notified that I was pre-approved for a US Bank Cash Rewards card, which I applied for and was approved with a $2,000 credit limit.  After having the new Cash Rewards card for about a year, I requested a credit limit increase on the $300 credit limit Platinum card I've had for about 3 years.  I was denied the credit limit increase due to "derogatory/late payments" from over 5 years ago.  I haven't missed or been late on any payments and have kept my balances low.  Can anyone explain to me why they approved me for a new Cash Rewards card with a $2,000 limit, but then denied me a credit limit increase for my $300 limit?  Baffles me to no end....

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This is all pure speculation on my part, but here's what I think. To me it sounds like a big part of the problem is simply different level products. I suspect that most people with their Platinum card have low(ish) limits and it's probably a lower tier/starter product, while the Cash Rewards card is a higher tier product and people likely typically have higher limits on it. For this reason if you qualify for the Cash Rewards at all, you're probably going to get a decent limit. By contrast you may not 'qualify' for a limit increase on the Platinum because few people really do because the card itself just has either a firm or soft ceiling.

To me it sounds similar to how Capital One for instance essentially has three tiers of products: Platinum cards, Quick Silver cards, and Venture cards. And typically the limits on the cards reflects this. Generally the limit on a platinum card is just going to be lower than a Quick Silver and MUCH lower than a Venture. Of course there are always exceptions, but by and large that's the pattern.

If this is indeed the case then they pretty much had to come up with some reason for declining you - and banks always can come up with a reason of some kind when they need to - so that's what they used. Would you have gotten an increase on the Platinum with "perfect" credit?...I bet so actually, but it probably still would have been much lower than your Cash Rewards.

On that note though, it's obviously your business, but if it were me I wouldn't use the Platinum anyway. The Cash Rewards card is going to have better rewards and perks. I'd either PC the Platinum into something else, see if they'll let you consolidate limits with the Cash Rewards, sock drawer it, or just close it altogether. If you've got the Cash Rewards you've likely 'moved beyond' the Platinum.

Again, all just speculation on my part, but that's what I suspect is going on here. Anyway, congrats on your improving credit and 5-year clean record!

[Tim_S]

Thanks Kevin.  I guess a lot of what you said makes sense.  I will look into PC'ing the Platinum into another product.

[Anonymous]

I had the same problem. I did however get an increase to $1500 on my platinum card. Then a year later I  PC'd to cash rewards, tried for another CLI but they wouldnt due to the recent change on the account. 3 months later I submitted another request for $3500 and was approved. Then called and got PC'd to cash rewards vis sig

[Anonymous]

This is the third conversation I have had about US Bank this week.  

It does bring up a new question, though, do they have different levels of Platinum cards?  I ask because my Plat has a nice large limit, and a very attractive APR (once the 0% promo ends)

My story:

US Bank was my 2nd CC, after my Cap 1.  I got the Kroger-branded card, $500 limit.

When I found out I was being transferred, and the area didn't have any Kroger stores, I went in to a branch to see if I could PC the card.  They said they couldn't, but instead opened up a Cash Rewards, with a $2k limit.  I have asked a number of times for a CLI, and they WILL NOT budge.  But I have had a personal banker (didn't even know I had a personal banker ) call me twice late last year, once to offer a PLOC, and a week later with the abovementioned Plat card, $6k limit, 0% for 15 months, and a very nice APR after that.  But, still, they won't even consider raising the CL on either of the other cards.

As I said in the other threads, seems like a perculiar way to do business.

[Themanwhocan]

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@Anonymous wrote:

This is the third conversation I have had about US Bank this week.  

It does bring up a new question, though, do they have different levels of Platinum cards?  I ask because my Plat has a nice large limit, and a very attractive APR (once the 0% promo ends)

My story:

US Bank was my 2nd CC, after my Cap 1.  I got the Kroger-branded card, $500 limit.

When I found out I was being transferred, and the area didn't have any Kroger stores, I went in to a branch to see if I could PC the card.  They said they couldn't, but instead opened up a Cash Rewards, with a $2k limit.  I have asked a number of times for a CLI, and they WILL NOT budge.  But I have had a personal banker (didn't even know I had a personal banker ) call me twice late last year, once to offer a PLOC, and a week later with the abovementioned Plat card, $6k limit, 0% for 15 months, and a very nice APR after that.  But, still, they won't even consider raising the CL on either of the other cards.

As I said in the other threads, seems like a perculiar way to do business.

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Personal Banker is what US Bank calls pretty much every employee in the bank that isnt working as a teller. So they are not your personal banker, they are A Personal Banker

You should be able to call the number on the back of the US Bank platinum card, and ask if it qualifies to be PC'd to a cash+. The underwriters have to have marked that account as eligible already, and the requirements used to be $5000 credit limit, $30K income, and at least 5 active credit cards on your credit reports. Now that they allow people to apply for the Cash+ online, they requirements may be different.

I've been fairly successful in requesting CLI's by filling out this online form and requesting $1500. Usually you don't get a HP if you request $1500, and you cant get a CLI more often than every 6 months. https://www2.usbank.com/cgi_w2/cfm/credit/usb_cards/manage/usb_card_chg_main.cfm?Page=Limit

So, it doesnt hurt to request a CLI on each card at slightly over 6 month intervals.

[Tim_S]

Well, I got a letter in the mail from US Bank yesterday saying, "congratulations on your credit line increase on your Cash Rewards credit card"!!  Even though I've since PC'd my platinum into a Perks +, they still won't increase me from my original $300 limit on that card....lol

[coldnmn]

Personally if they won't give it a CLI I would ask to have the CL moved to another card. I feel a $300 CL card hurts under manual review by creditors. If they won't move the CL I would close it. But that's just me. I started with a $300 Cap1 card and after 6 years it's only raised to $4500. When I started getting larger CLs then I found creditors were more generous. Good Luck!