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Is 5K a toy limit?

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SunriseEarth
Moderator Emeritus

Re: Is 5K a toy limit?


@longtimelurker wrote:

@watch44 wrote:

@BMW_M-Series wrote:

so basically it all depends on how u want to define 'toy limit' 


I think that was the whole point of OP asking. Cat Tongue


And I think the answer is "A limit you are not satisfied with", so the question really becomes "Are you satisified with a $5K limit?"


That's a much better way to frame it, IMHO



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Message 51 of 62
SunriseEarth
Moderator Emeritus

Re: Is 5K a toy limit?


@KennyS2006 wrote:
I'm sorry, but what a stupid idea that 5k is a toy limit. That's like saying 60k is a toy salary.

Seriously, this whole toy limit thing is such a stupid, idiotic concept.

+1.  If you're building or rebuilding credit, that $200 store CC is your shot to prove yourself.   That's nothing to toy about!



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Message 52 of 62
BMW_M-Series
New Contributor

Re: Is 5K a toy limit?


@KennyS2006 wrote:

@longtimelurker wrote:

@KennyS2006 wrote:
I'm sorry, but what a stupid idea that 5k is a toy limit. That's like saying 60k is a toy salary.

Seriously, this whole toy limit thing is such a stupid, idiotic concept.

I agree that it is very like that.  And for the same reasons, for some people, $60K IS a toy salary, they wouldn't consider taking a job that paid that because their life style/needs/ego needs a lot more.


Of course, but if you have a HNW individual you don't even really NEED credit so who cares about a toy limit? I just think most people that say that what they have is a toy limit really mean they aren't happy with it and just want the pride of having a large TL, as if it matters, in the end really.  

 

We only need a functional limit.. and most companies adjust that based on your actual spending/paying habits. So I just think the whole idea of a toy limit is just comical.

 

 


most people dont NEED credit cards. almost no one does. the reason people get them are for points and the flexibility to over extend yourself for certain things(some people, not everyone). credit is really a luxury. no comments so far have changed my mind on what I BELIEVE is a toy limit. in my opinion it will vary from person to person. 5k will be a toy limit for some people BUT 5k is not a beginner limit by no means. remember this is my opinion and everyone else is welcomed to their opinion. 

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Message 53 of 62
Kenny
Moderator Emeritus

Re: Is 5K a toy limit?

Correct.. and I agree. Smiley Happy

Message 54 of 62
CreditScholar
Valued Contributor

Re: Is 5K a toy limit?


@KennyS2006 wrote:

@longtimelurker wrote:

@KennyS2006 wrote:
I'm sorry, but what a stupid idea that 5k is a toy limit. That's like saying 60k is a toy salary.

Seriously, this whole toy limit thing is such a stupid, idiotic concept.

I agree that it is very like that.  And for the same reasons, for some people, $60K IS a toy salary, they wouldn't consider taking a job that paid that because their life style/needs/ego needs a lot more.


Of course, but if you have a HNW individual you don't even really NEED credit so who cares about a toy limit? I just think most people that say that what they have is a toy limit really mean they aren't happy with it and just want the pride of having a large TL, as if it matters, in the end really.  

 

We only need a functional limit.. and most companies adjust that based on your actual spending/paying habits. So I just think the whole idea of a toy limit is just comical.

 

 


So what do you expect a HNW or UHNW individual to use instead?

 

Tinuvel is spot-on by saying "I tend to think of it less from the cardholder's perspective, and more from the lenders. To me, a toy limit is a smallish limit that a lender will use to test the waters with a borrower. It's a limit that poses a trivial risk exposure for the lender."

 

However if you're going to look at it from the cardholder's perspective: Yes the concept of a toy-limit changes from person to person based on individual circumstance, but there is a general idea of where it resides (for most people anyways).

 

It's like saying "what's rich?" will vary from person to person, and while it may be subjective not many people would consider an annual income of 30k to be rich. It may be true to the homeless guy on the street, but not with the majority of the population.

 

There's no point even having such a concept as "a toy limit" if there isn't (at least) some general consensus of roughly what it might be.

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Message 55 of 62
Kenny
Moderator Emeritus

Re: Is 5K a toy limit?

I really hate I even posted in this thread... :-/ 

Message 56 of 62
jsickz32
Valued Contributor

Re: Is 5K a toy limit?

That depends on where you are credit wise. When i started building my credit anything over 1k was awesome. Now i just want to have all my cards over 5k.

Does that mean that 2k is not enough for my monthly spending? No but its just where i feel i need to be after all this years building my credit Smiley Happy

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Message 57 of 62
Smug
Established Contributor

Re: Is 5K a toy limit?

No, 5k is your first Big Boy limit.
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Message 58 of 62
longtimelurker
Epic Contributor

Re: Is 5K a toy limit?

According to http://www.ehow.com/info_7860283_average-credit-card-limits.html, which cites myfico as the source:

 

In 2011, the average consumer has an average total credit card limit of about $19,000 spread across an average of nine credit cards, according to myFICO.com. This translates to an average credit card limit of about $2,111 per card, although some major credit cards may have much larger credit limits than department store charge cards.

 


Wish I knew the figure just for credit cards!   So while that doesn't answer "Is $5k toy?" is gives a lower bound for the average CL limit of $2k, and probably, once store cards are removed, quite a bit more.

Message 59 of 62
nyancat
Established Contributor

Re: Is 5K a toy limit?

I really don't think so, I consider my $1500 Discover IT to be a toy limit, however.

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Message 60 of 62
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