How are credit limits determined?

coachb123 · ‎12-27-2012

How does a card issuer determine the amount of credit to give a customer for a new card? After cleaning up my credit, I have yet to have anyone give me a card with more than a $500 limit. I make almost $50k a year and just recently bought 2 new cars for $38K and $39K. Would it be possible to apply for a card with my wife? Together we make over $100K.

daveg38 · ‎12-27-2012

From my personal conversations with 'analysts', they use some or all of the following factors:

*DTI

*Length of credit history

*Accounts previously paid satisfactorily

*Income

*Length of residency (not sure, but they wanna make sure you're not a 'flight risk')

*Current high credit limits

Ch7 Discharge: 5/14/2016 | Target RedCard $900 | Merrick DYL $500

scenery_guy · ‎12-27-2012

A joint account might help. The two auto loans will no doubt eventually help. A relationship with a card issuing bank helped me (both Bank of America and recently Chase).

Walt_K · ‎12-27-2012

Credit unions are often more generous with limits.

Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720

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MovingForward_2012 · ‎12-27-2012

How long have you had the low limit cards, who are they issued through, secured or unsecured OP? This info would be helpful to see where you stand.

Last App: 4/5/13 Gardening until July 2014

MovingForward_2012 · ‎12-27-2012

Are both those cars in your name only? & what is your Uti (IOW, how much credit is used on your credit reports?), and do you know your fico score?

Sorry for all the questions but we need to understand your credit profile a little better to come up with more suggestions for you.

I will say that as of right now, given the info provided, that is A LOT of car debit when apping as an individual...that could be one possible problem.

Last App: 4/5/13 Gardening until July 2014

coachb123 · ‎12-27-2012

The car loans are joint between my wife and I. Utilization is low but I do have a lot of inquiries because it seems everyone use Equifax.

Cars are Cap One, Orchard Bank, Bank of America (secured). I had charge offs from credit one, and HSBC from 2008 and 2009. Have had the new cards since January. Got a Lowes card in May.

How many apps is to many in a year?

Wolf3 · ‎12-27-2012

@coachb123 wrote:
The car loans are joint between my wife and I. Utilization is low but I do have a lot of inquiries because it seems everyone use Equifax.

Cars are Cap One, Orchard Bank, Bank of America (secured). I had charge offs from credit one, and HSBC from 2008 and 2009. Have had the new cards since January. Got a Lowes card in May.

How many apps is to many in a year?

Every app that is declined goes to the "too many" pile. All the ohers are just fine.