Good Decision?

[keithbward]

So I recently applied for the NFCU cashRewards card and they gave me a 10k credit limit. Highest credit limit I've ever received and I was stoked. Mainly because I know I will probably get anywhere near using that much on one card. Feeling pretty good about having a VISA Signature card after going through this rebuilding stage. It helped my utilization tremedously and will keep me in the 1-9% without problem. Because I've read the high praise on the growth of cards from NFCU, I decided to apply for the Flagship Rewards card knowing I would get a denial, but it was to transfer 5k from my cashRewards to the Flagship card. So instead of 1 card at 10k I have 2 at 5k. My plan is to hopefully have them grow together with better limits so other banks when I app again in a year will see my usage and responsibility with limits in the 5k+ range. Do you guys think that was a good decision or would it not have really mattered?

[keithB]

I would have rather had the $10,000 limit.  Seems to me, once you break that threshhold and show you can handle it, more higher CLs come your way.  But my highest is only at $7,000 so what do I know 

[OHWWCB]

Maybe someone can answer this for me, too. Is there a factor in decisions where they look at the avg credit limit of your cards?

[GFer]

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@keithB wrote:

I would have rather had the $10,000 limit.  Seems to me, once you break that threshhold and show you can handle it, more higher CLs come your way.  But my highest is only at $7,000 so what do I know 

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+1

[keithB]

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@OHWWCB wrote:

Maybe someone can answer this for me, too. Is there a factor in decisions where they look at the avg credit limit of your cards?

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I'm not in the business so I am just guessing and I'm sure someone else with more experience can help us out but I believe they not only look at average credit limit of the cards but also at the limits of individual cards. Let's say your highest card is at $5k and you fit in their formula as an excellent potential customer.  It wouldn't do them much good to give you a card at $1k because you might be insulted not use it and close the account.  But now if their formula (algorithm) supports it, they might offer you $10,000 because they know it will help their card become your "go to card".

Of course, I could be wrong but to me this seems logical.

[Creditaddict]

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@keithbward wrote:

So I recently applied for the NFCU cashRewards card and they gave me a 10k credit limit. Highest credit limit I've ever received and I was stoked. Mainly because I know I will probably get anywhere near using that much on one card. Feeling pretty good about having a VISA Signature card after going through this rebuilding stage. It helped my utilization tremedously and will keep me in the 1-9% without problem. Because I've read the high praise on the growth of cards from NFCU, I decided to apply for the Flagship Rewards card knowing I would get a denial, but it was to transfer 5k from my cashRewards to the Flagship card. So instead of 1 card at 10k I have 2 at 5k. My plan is to hopefully have them grow together with better limits so other banks when I app again in a year will see my usage and responsibility with limits in the 5k+ range. Do you guys think that was a good decision or would it not have really mattered?

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Apply for 2nd.

get declined

send secure message asking them to move $1k-$9k to open the 2nd card as long as you are not applying for flagship that requires $5k.

I prefer to move smaller amount and wait the 3 months and hopefully get an instant sp cli via online luv button on both accounts!

[keithbward]

My hope is to have cards around the 5-8k area. The 10k was awesome to look at, but like I said I would never charge that much. Of course having the cushion is awesome, but with how great things have been going for me and my awareness now, I should be able to have both at a 10k threshold in a year if not 6 months. I have to garden now anyway so my strategy is to have two cards reporting at 5k let them grow at the same time with my other timelines this next year and get the limits increased. I have a raise coming up at the first of the year that I'm sure will help me out with that. I could be off, but I figure in a year I'll have 2 cards at or around 10k and that's about as large as I would even need so getting some more prestigeous cards at 5k and above limits would be fine by me. I think it's awesome that so many people have buying power with cards with 25k and 50k, but for me that is hardly necessary for my living situation. I just figure being able to show multiple cards at a high limit would be a better representation of my responsibility than just one.

[GFer]

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@keithbward wrote:

My hope is to have cards around the 5-8k area. The 10k was awesome to look at, but like I said I would never charge that much. Of course having the cushion is awesome, but with how great things have been going for me and my awareness now, I should be able to have both at a 10k threshold in a year if not 6 months. I have to garden now anyway so my strategy is to have two cards reporting at 5k let them grow at the same time with my other timelines this next year and get the limits increased. I have a raise coming up at the first of the year that I'm sure will help me out with that. I could be off, but I figure in a year I'll have 2 cards at or around 10k and that's about as large as I would even need so getting some more prestigeous cards at 5k and above limits would be fine by me. I think it's awesome that so many people have buying power with cards with 25k and 50k, but for me that is hardly necessary for my living situation. I just figure being able to show multiple cards at a high limit would be a better representation of my responsibility than just one.

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There's nothing wrong with taking it slow. You seem to have a good attitude about building!

The thing about higher limits, is not that we really want (or do spend more). It's that it helps keep overall utilization down and scores up!

Good luck!

[longtimelurker]

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@keithB wrote:

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@OHWWCB wrote:

Maybe someone can answer this for me, too. Is there a factor in decisions where they look at the avg credit limit of your cards?

---

I'm not in the business so I am just guessing and I'm sure someone else with more experience can help us out but I believe they not only look at average credit limit of the cards but also at the limits of individual cards. Let's say your highest card is at $5k and you fit in their formula as an excellent potential customer.  It wouldn't do them much good to give you a card at $1k because you might be insulted not use it and close the account.  But now if their formula (algorithm) supports it, they might offer you $10,000 because they know it will help their card become your "go to card".

Of course, I could be wrong but to me this seems logical.

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I'm pretty sure that, formally at least, an underwriter MUST make a decision based on the instituions lending policies, at least to start.  They are responsible if the customer defaults, and I'm sure "But all those other banks gave them big CLs" won't be accepted as an excuse!   More to the point, some of the bigger CLs may have been given before the customer's credit report got worse (or smaller lines before the credit report improved) so existing limits don't necessarily reflect the current situation.

Now that said, apart from risk mitigation, which is the primary role, they do also want you to use the card, so they might slightly increase a caculated CL if it seems uncompetitive.

Personally I don't believe ANY of the Bank X matches CL type stories, as there seems to be at least as many counter examples as positive ones, and IMO when it does happen, it is because two institutions are looking at similar credit reports and reaching similar conclusions.