Credit Cards

[nenuco]

I recently acquired a couple of new cards. I'm going to try to stay out of the app zone, but would like to know how much credit will a lender usually extend beyond your credit. I ask for future CLI. I know lenders are different, but what is the general rule of thumb? Thanks

[Dustink]

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nenuco wrote:

I recently acquired a couple of new cards. I'm going to try to stay out of the app zone, but would like to know how much credit will a lender usually extend beyond your credit. I ask for future CLI. I know lenders are different, but what is the general rule of thumb? Thanks

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I think credit karma says 20% of your income...haha

I think it varies too much from lender to lender. Most will just focus on what you have with their bank. So eventually you will reach a limit with a particular bank, but I don't think there is ever a ceiling. There will always be a bank out there willing to accept you as long as your underlying credit report looks good. 

[CruzImperial]

I would say usually from 10% to 20% your income is easy for them to approve without any concerns- given you are not rich.

After that, you can go up based on each lender's guidelines and risk scoring systems.

Besides that, anything over $25k CL will most likely require an income verification of some part with most lenders.

[nenuco]

I definitely have more than 20% lol... There are so many lenders that don't to counter offers when it comes to CLI, I just don't want waste a hardpull and the reason for denial being having too much credit. There must be a limit where credit scores and history don't factor in, and your income becomes the deciding factor. Too bad there is no magical formula to find out what that is.

[nenuco]

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CruzImperial wrote:

I would say usually from 10% to 20% your income is easy for them to approve without any concerns- given you are not rich.

After that, you can go up based on each lender's guidelines and risk scoring systems.

Besides that, anything over $25k CL will most likely require an income verification of some part with most lenders.

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25K otal credit with that lendor correct? Will lendors just use internal lending or will a big factor be what other lendors have already extended to you?

[Dustink]

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nenuco wrote:

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CruzImperial wrote:

I would say usually from 10% to 20% your income is easy for them to approve without any concerns- given you are not rich.

After that, you can go up based on each lender's guidelines and risk scoring systems.

Besides that, anything over $25k CL will most likely require an income verification of some part with most lenders.

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25K otal credit with that lendor correct? Will lendors just use internal lending or will a big factor be what other lendors have already extended to you?

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I think he was talking about individual cards.

[CruzImperial]

Aww, something went wrong and my post didn't actually post lol

The 25K no income verification is generally for a single CC. After that, lenders like Amex and US.Bank among others, require proof of income/assets to grant you more credit.

USAA among other generous lenders out there may give us 10K CL based on the same file and income someone else may only give out 3K with.

When talking about total CL with a specific lender, since lenders have their own scoring models and handle limits differently, each of them will have a different internal limit for us. Chase is known for turning down applications even with good files because people have reached the max credit limit in the systems. As most people don't like wasting an inquiry, they transfer limits from their other Chase cards to the new one.

My highest CL is 6K on my BCP with $25K income so that would be about 24% of my income with one Amex CC. I'm waiting for another promotion at the end of the year and in 6 months, I will see how much credit they are willing to grant to someone having what is considered as low income.

Expected income will be about 35K by then and the 3CLI I will request will be about half of that.

Would they give me the full 18K? I hardly see that happening x)

[nenuco]

That makes sense. I have $3,000. I don't think they will give me the usual 3X CLI to $9,000 :/ I already have a BCE @ $3,000. Maybe $6K each. Thanks for the detailed post

[CruzImperial]

If you are talking about Amex BCE, the credit limit increases are SP so don't worry about any HP hitting your reports.

And yes, the CLI is based on income and past payment history. You may already know this but make sure to PIF every time or it will be very hard to get an increase from them.

You treat them right and they will reward you right back. Good luck!