Do cc companies try to match high CLs?

[rkinnahan]

I'm still kind of new to the forum and was wondering, do credit card companies try to match other high credit limits?  For example, if I have some cards with a credit limit over $10k, will other cards auto-CLI up to match the other cards in my wallet?  I have a Chase Amazon Rewards with a limit of $3k, but other Chase cards at 7k and 12k, and an Amex at $13.5k.  Will Chase auto-CLI me higher to match, or is that only taken into account when applying for a new card?

Thanks for the responses!

[longtimelurker]

Some people say "Yes", but not necessarily based on much evidence.  

For an underwriter, the goal, if approved at all, is to give a CL appropriate to the risk, so, in theory, CLs on other cards don't matter except in that they impact overall risk.  So if you have a large amount of CL on other cards, and the underwriter thinks you have enough/too much for your income, you might actually get a small CL (or rejected).  I was denied a CLI for this reason so it really does happen.

On the other side, the bank wants you to use their card, and a low CL will reduce use and thus their transaction fees.  And even if the CL is really "enough", they understand that giving a $2k limit when all your other cards at > $10K, you may just not feel inclined to use it.

But, their job is foremost risk minimization, so the first consideration is more important.

[b_seeker]

Also keep in mind that banks have exposure limits which are the maximum amount of combined credit they are willing to extend to you. If your exposure with Chase, for example, is 20K and you have cards at 10K, 7K, 3K, then Chase isn't going to CLI you to 30K just to match limits.

Real life example: I'm at my exposure limit for Barclays with my current student income. To get more cards, I either have to move limits around or wait until I get a career job.

[FinStar]

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@longtimelurker wrote:

Some people say "Yes", but not necessarily based on much evidence.  

For an underwriter, the goal, if approved at all, is to give a CL appropriate to the risk, so, in theory, CLs on other cards don't matter except in that they impact overall risk.  So if you have a large amount of CL on other cards, and the underwriter thinks you have enough/too much for your income, you might actually get a small CL (or rejected).  I was denied a CLI for this reason so it really does happen.

On the other side, the bank wants you to use their card, and a low CL will reduce use and thus their transaction fees.  And even if the CL is really "enough", they understand that giving a $2k limit when all your other cards at > $10K, you may just not feel inclined to use it.

But, their job is foremost risk minimization, so the first consideration is more important.

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+1

[atarvuzdar]

GE has been matching or exceeding my highest limit on my CLI's this year and on the eBay MC I app'd for as well. Granted, all of my limits are low and a good majority of my cards are backed by GE, but I now pretty much know that they will up me to at least what I have on other cards. Once I got my Discover with $1000 limit my Walmart auto-CLI'd to $1200 the following month and Amazon went to $1000. When my CapOne's were CLI'd to $1500 each (after telling the EO that Discover was my new go-to) I got $1500 on Lowe's and $2000 on eBay. After eBay reported, JCP jumped to $2200 and Walmart to $2000.... etc. It's a happy game of leapfrog that I'm enjoying the benefits of right now. Amazon should be next in line for a CLI in a month or two, and I suspect it'll increase to somewhere around $2000 as well. Discover ages to 6 months next month as well, it'll be interesting to see if this phenomenon is just relegated to GE in my little circumstance or whether Discover will follow the same route of leapfrogging the competition.

All for what it's worth.

[Elcid89]

From personal experience, yes. I've seen CLI's that match pretty closely with existing higher limit lines from other lenders. You can check my sig to see that pattern. Citi and Chase have been pretty blatant about it. When Chase increases, I can pretty much expect that Citi will match it within a few months, and vice versa. YMMV though

[Elcid89]

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@longtimelurker wrote:

Some people say "Yes", but not necessarily based on much evidence.  

For an underwriter, the goal, if approved at all, is to give a CL appropriate to the risk, so, in theory, CLs on other cards don't matter except in that they impact overall risk.  So if you have a large amount of CL on other cards, and the underwriter thinks you have enough/too much for your income, you might actually get a small CL (or rejected).  I was denied a CLI for this reason so it really does happen.

On the other side, the bank wants you to use their card, and a low CL will reduce use and thus their transaction fees.  And even if the CL is really "enough", they understand that giving a $2k limit when all your other cards at > $10K, you may just not feel inclined to use it.

But, their job is foremost risk minimization, so the first consideration is more important.

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Very true, but CLI's tend to be decided by computer, not an actual person. If the computer decides that you merit an increase based on the conditions that they have programmed into the algorythym, then it grants it. Underwriters only get involved on initial applications kicked out for review, recon requests and manual requests (i.e. calling underwriting seeking an increase).

[dddewdrop]

Sometimes they do. "a rising tide lifts all boats" as they say...

[jsickz32]

Nope. I just got approved for FNBO amex and they didnt match my highest limit.

[CreditHammer]

sometimes when you recon you can let them know what your other limits are in hopes that they will try and match or exceed them.. When i do a recon i try and let them know that and it usually helps when trying to obtain a good CL