Reply
Established Member
Posts: 23
Registered: ‎02-17-2008
0

How are CL/CLI decided?

I have never seen this question answered in this forum before.  I have read of people getting huge CL or increases many times.  I have also heard that income is not a factor in credit scores anyway.  How do they decide to set a credit limit?  Why would I be approved for $2000 max and others in the tens of thousands?
Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
0

Re: How are CL/CLI decided?

[ Edited ]


creditcrazy wrote:
I have never seen this question answered in this forum before.  I have read of people getting huge CL or increases many times.  I have also heard that income is not a factor in credit scores anyway.  How do they decide to set a credit limit?  Why would I be approved for $2000 max and others in the tens of thousands?


If you have low limits on existing lines, it can be tough to get a lender to give you a fairly large CL.  Most of the time, lenders don't want to be the first to take a chance with a very large CL.  Once you have a large CL, however, others tend to follow.
 
Income does not count in credit scores, but it is taken into account by lenders, especially when it comes to determining initial CLs and future CLIs.
 
For large CLs, IME the primary factors are existing CLs, income, and scores, in that order.
 


Message Edited by cheddar on 05-19-2008 07:07 PM
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
Epic Contributor
Posts: 24,108
Registered: ‎10-23-2007
0

Re: How are CL/CLI decided?

I think you will see the largest CLI if you use a good portion of your current CL but pay almost all of your balance each month.
Fico Scores: EQ- 647., TU 705 Sync, EX 700 (04/07/15)
I'm just trying to catch up to RON1
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
80 Cards and Counting :smileytongue:
Senior Contributor
Posts: 3,279
Registered: ‎08-03-2007
0

Re: How are CL/CLI decided?



Creditaddict wrote:
I think you will see the largest CLI if you use a good portion of your current CL but pay almost all of your balance each month.





From what I've read here, that's the way to go for big CLIs with Amex and GEMB in particular.
Here we go again...
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.