IS LOW LIMIT CARDS BAD???

[Anonymous]

Finally received my denial letter for HOOTERS and the reason they denied me was:

"Insufficient experience with high credit limits"

I have received this reason for denial before and I'm starting to think credit cards with $300-$500 limits reflect poorly in lenders eyes!

I curently have 2 cards: BofA fully secured $400 limit and HSBC Mastercard $300 limit

I'm thinking about increasing the limit on my BofA to $2500 and opening a Citi Secured with $2500........Any suggestions will be appreciated!

[Anonymous]

How long have you had the BoA secured? It may graduate to a higher line card soon.

Low limit cards are better than no revolvers and they can help you rebuild, but you are right that they don't look great on a manual review. To FICO scores the CL doesn't matter, only how you use it.

[laz98]

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@Anonymous wrote:

Finally received my denial letter for HOOTERS and the reason they denied me was:

"Insufficient experience with high credit limits"

I have received this reason for denial before and I'm starting to think credit cards with $300-$500 limits reflect poorly in lenders eyes!

I curently have 2 cards: BofA fully secured $400 limit and HSBC Mastercard $300 limit

I'm thinking about increasing the limit on my BofA to $2500 and opening a Citi Secured with $2500........Any suggestions will be appreciated!

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if you have the money to do so, that will probably help you.  bank of america wouldn't even give me a SECURED card, because they said i had too many low limit cards.  i was like THEY'RE WELL-MANAGED LOW LIMIT CARDS!!!! 

[wmarat]

As I've already posted tiny limits beget tiny limits.

In my experience, BOA is great to work with. I've started out with BOA's fully secured $1000 card. I have today 2 BOA CC with $18k CL each.

BOA usually graduate secured cards after 9 month

[score_building]

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@wmarat wrote:

...tiny limits beget tiny limits.

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lol, so funny the way you put it, but so true-

[Anonymous]

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@Anonymous wrote:

Finally received my denial letter for HOOTERS and the reason they denied me was:

"Insufficient experience with high credit limits"

Sounds like they pulled a denial out of a hat. If they wanted to approve you they could of done so with a $200 cl.

[Anonymous]

I only have had my BofA secured for 4 months now so I got 5 to 8 months to go til it graduate. However, I think its time to increase the limit myself before it graduate.

As I stated before this in not the only time that I've been denied credit due to having cards with tiny limits!!!

[Anonymous]

ARE lower limit cards bad?  Well, in a denial letter I received from a card issuer some time ago they wrote that one of their reasons for the denial was " having too many cards with low limits".  I had 4 :  a $2000, a $5000, and two $300 limit cards.

So the answer is YES, low limit cards CAN be bad in that respect....but they can also be good, as you know, to establish (or re-establish) credit.  

[Anonymous]

Also, I am not sure how a BofA secured card works...but can't you make the limit be whatever you want it to be?  I thought it was like $300 to $5000 or something like that.  If so, up your limit yourself.

[Anonymous]

Yes, I believe you can make your own limit anywhere from $300 to $10,000....So I'm going to bump it up from $400 to $2500 and see if that helps.

Also, I might add the Citi Secured Mastercard with another $2500 CL and hopefully that'll do the trick! We'll see