07-04-2013 03:58 PM
07-04-2013 04:02 PM - edited 07-04-2013 05:12 PM
Some people seem to think so. I have a card @ 750 and one @ 6000, so I don't buy that theory totally. I'm sure other considerations come into play. Credit score, general credit file, utilization, etc all play a part, IMO.
07-04-2013 05:12 PM
You're welcome. Happy 4th to you as well!
07-04-2013 05:30 PM
Personally, I feel like it depends on your history, utilization, and income. I've been told that CC companies look at your limits to see if, worst case senario, you max them out right now, would you be able to repay. IDK how true that is.
But I had a Cap1 card with $500 limit, and Discover approved my app for $7500, but I had my Cap1 card for almost 6 years when I applied with Discover. So I had 6 years of good payment history.
07-04-2013 05:32 PM
Lenders also consider other factors such as income, thick or thinness of your file, derogs ect...along with your FICO score. As you get into higher balances with prime cards, there is evidence that they want to see if you can handle high balances and will match or exceed them..
07-04-2013 06:54 PM
Is it true that if you only have low limits, that when you apply for new credit that those limits will also be low? Over in the rebuilding, they say FICO doesn't care about limits and only utl...but my question is regarding lenders. I will be looking for new card within the next couple months, but don't want to get another lame $500 limit. I have a secured card, and can add money into it to raise its limit with the hopes that my next card will have a high limit, but if it really doesn't matter then Id rather just save my money.
Others have addressed matching limits in general, and that seems to be YMMV. But in the specific case you mention, I think the answer is "Yes" in most cases.
If you have cards with limits $400, $500, $550, $600 it's pretty unlikely that a lender will want to give you a $10K card (but as one of the posters said, after many years of on time payment, you might run into an eager lender who will give you a better limit.)
But it is always hard to tell as there are many variables: some swear that companies match, others have clear counter-examples (e.g. Barclays gave me my lowest CL in 20 years, 1/3rd of the next lowest and 1/10 of the highest. THe following month I got a card from another lender 5x that of Barclays, so it wasn't just a change in credit history!)
07-04-2013 11:44 PM