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Low limits?

Contributor

Low limits?

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.

Thanks
Message 1 of 12
11 REPLIES
Frequent Contributor

Re: Low limits?

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.

Meg.

FICO: 4/2016 - TU 841 | EQ 840 | EX 837

FNBO 23,600 | Amex SPG 13,900 | Amex BCP 13,400 | Barclays/Sallie Mae13,000 | Discover IT 12,500 | Lowes 10,000 | PLOC 9,300 | NASA FCU 8,700 | Citi Simplicity 6,200 | BOA Platinum+ 6,000 | Achieva CU 5,500 | Chase CSP 5,000 | Sam's Club 3,000 | Sears 900
Message 2 of 12
Contributor

Re: Low limits?

Thanks for your speedy response!! Happy 4th everyone!!!
Message 3 of 12
Frequent Contributor

Re: Low limits?

You're welcome. Happy 4th to you as well!

Meg.

FICO: 4/2016 - TU 841 | EQ 840 | EX 837

FNBO 23,600 | Amex SPG 13,900 | Amex BCP 13,400 | Barclays/Sallie Mae13,000 | Discover IT 12,500 | Lowes 10,000 | PLOC 9,300 | NASA FCU 8,700 | Citi Simplicity 6,200 | BOA Platinum+ 6,000 | Achieva CU 5,500 | Chase CSP 5,000 | Sam's Club 3,000 | Sears 900
Message 4 of 12
Mega Contributor

Re: Low limits?

IMO it depends on your credit history and how long your accounts been open. Also I would definitely up the deposit on the secured cc before apping.



EQ FICO 548 3/3/16
Message 5 of 12
Frequent Contributor

Re: Low limits?

Some creditors sometimes do match your highest, or sometimes second highest, limit. 

Message 6 of 12
Frequent Contributor

Re: Low limits?

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.

AMEX BCE: 5k; Barclay Apple: 2.5k; BoA CB: 3k; BoA BBR 4.2k; BoA Travel: 8k; Chase Sapphire: 5k; Chase Freedom: 6k; Citi Diamond: 3k; Discover IT: 9k

June 2013 FICOs: TU: 763; EX: 754; EQ: 764 (was 747 9/2012). Last app 2/20/2014 Garden until 3/2015
Message 7 of 12
Established Contributor

Re: Low limits?

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..


Starting Score: TU 686 EX 641 EQ 690
Current Score: TU 779 EX 767 EQ 740
Goal Score: 800 Club

BCE $12.5K, 5/3 Sig $10K, Wally Discover 10K, Cash+ $9K Sam's Discover 10K, Freedom $6K, Zales $5.5K, More $5K, Cap one $5K, Barclay 2.5K, Household Plat $1.5K, Household Gold $1.5K, Credit One $1K, First Premier Plat $.675K First Premier Gold $.65K
Message 8 of 12
Super Contributor

Re: Low limits?


samahok wrote:
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.

Thanks

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!)

Message 9 of 12
Established Contributor

Re: Low limits?

I had cards with $200, $700, $1000, and $1000. I got a PayPal Extras in May for $2000. Yesterday I got three cards at $3500, $4000, and $7200. So I'd say no, having low limits won't bar you from getting higher limits as long as you use what you currently have responsibly.

Starting Score: 515
Current Score: EQ08 711 EX08 731 TU08 735
Goal Score: 740+

Amex BCP $25k | Discover IT $15.7k | Cap 1 QS $10k | PSECU $10k | Citi DC $9300 | Citi DP $6800 | Barclay Ring $6500 | PayPal Extras MC $5045 | DCU $5000 | Chase Slate $5000 | Barclays AA $4100 | Chase Freedom $4000 | Union Plus $1000 | Target $500
Message 10 of 12