Q re store card CLIs

[Anonymous]

I understand that people want CLIs often just for more available credit but I do not understand why people request CLIs of large amounts (and by large I mean over $5000 in this case) at discount stores and low tier department stores. I have read about several really high credit limit increases for stores that just do not make sense.

If, and I dont know how true this is, there is a cap on what you will be extended based on scores and income why would you want a large portion if that in store cards that do not have benefits other than occasional coupons, high interest rates and limited purchase power (as in only what what store sells) instead of working to get better cards and or higher limits on more usable and rewarding cards.

edited for spelling because my fingers are to big for my iphone's tiny keyboard

[takeshi74]

Utilization matters with store cards as well.

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@Anonymous wrote:
I have read about several really high credit limit increases for stores that just do not make sense.

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Don't assume that what makes sense for you is what makes sense for everyone, regardless of topic.

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@Anonymous wrote:
If, and I dont know how true this is, there is a cap on what you will be extended based on scores and income

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There is no universal cap.  Creditors can and do vary in what they're willing to extend for any given credit profile.

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@Anonymous wrote:
indtead of working to get better cards and or higher limits on more usable and rewarding cards.

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Who says they're mutually exclusive?

[Anonymous]

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@Anonymous wrote:
I understand that people want CLIs often just for more available credit but I do not understand why people request CLIs of large amounts (and by large I mean over $5000 in this case) at discount stores and low tier department stores. I have read about several really high credit limit increases for stores that just do not make sense.

If, and I dont know how true this is, there is a cap on what you will be extended based on scores and income why would you want a large portion if that in store cards that do not have benefits other than occasional coupons, high interest rates and limited purchase power (as in inly what ghat store sells) indtead of working to get better cards and or higher limits on more usable and rewarding cards.

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Utilization.

They really should cap most of those store cards with a permanent $1,000 CL and the ability to call in and request more temporary limit at point of sale.

[Creditaddict]

Sync seems to have a cap of $100k across all Sync cards that one has... so yes once I get there then I would want to bring down CL's at places like 76 gas because I will NEVER charge more than $500/month and really probably over $200.

Really just depends though, where you shop, rather 0% stuff is involved so you want to delute out the util. or what not.

[SunriseEarth]

I think that a concern over UTIL is why it's done.   Store cards often have special financing offers, so a large purchase at a department store (major appliance, furniture, jewelry, etc) that can be paid over time could mess up UTIL.   Others just like to have the large CLs for UTIL padding.  

[Anonymous]

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@SunriseEarth wrote:

I think that a concern over UTIL is why it's done.   Store cards often have special financing offers, so a large purchase at a department store (major appliance, furniture, jewelry, etc) that can be paid over time could mess up UTIL.   Others just like to have the large CLs for UTIL padding.  

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I understand it counts towards or against utilization and that it just appears as available credit but it isn't always usable credit.

I didnt mean all store cards, some make sense, like lowes if you are a contractor or are remodeling or just bought a new place, or sears which carries all the things you listed above or Nordstroms, Macy's, Lord and Taylor... because they carry large ticket items and of course it makes sense if you can get a 0% offer on jewelry appliances or furniture (all big ticket items) but some seem strange to me, like walmart, target, jcp, kohls... not that they are bad stores it is just that why would you ever need $10,000 credit for any of them.  If i were a credit issuer I would be concerned if half that line was utilized at these stores, it seems like risky spending since nothing in these stores costs very much.  For 10,000 you can buy approxamately 320 non sale priced tshirts at jcp or khols, but if you did I would be concerned about your choices and ability to pay. 

[Creditaddict]

You forget walmart has TVs, furniture etc and JCP has a huge furniture department, just not in all stores... You have to think about the store as a whole and what they offer outside the everyday cheaper things as why you might want larger cl's... We just bought new custom couch at jcpenney with 0% for 36 months!