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So Credit limits are determined by how much one makes?

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Anonymous
Not applicable

So Credit limits are determined by how much one makes?

 Ok say I make $50,000 a year my wife makes $30,000 a year, combine those together and that’s $80,000 a year, but she is not an AU on my card. Would they go by my income alone?

My Scores EQ=649 TU=622 EX=?

 

Also,

 

What would the Credit limit be at 50k a year for scores in the (see below?)

 

550-625 Range = ?

625-680 Range = ?

680-750 Range = ?

 

  I’m sure this is no easy question and there will be different replies but, hey ill start it off. Keep in mind i had no CCs before 9/2007.

 

Marbles (HSBC)                  $300 CL

HSBC Sears                      $1900 CL

Chase Plat                         $500 CL

Hooters                              $500 CL

Zale’s (backed by citi)           $1000 CL ( lol and Citi denied me twice for their card)

HSBC direct Discover           $700 CL

Wal-mart                             $300 CL

 

 

Thanks for the input all!

 

*EDIT to show scores*



Message Edited by lookingfor700 on 05-30-2008 11:49 AM
Message 1 of 22
21 REPLIES 21
Anonymous
Not applicable

Re: So Credit limits are determined by how much one makes?

Each bank has its own lending standards, and each probably looks at different things. Some things that I suspect might be commonly looked at for CLIs:

Has your employment or income changed?
Have your scores changed?
How long have you had the card?
How heavily have you used the card?
Do you carry a balance or PIF?
What is your util on other accounts?
What kind of CLs have other lenders given you?
What is your DTI ratio?

I'm guessing, of course, but those might be good places to start.

Message Edited by LaserBlue on 05-30-2008 11:56 AM

Message Edited by LaserBlue on 05-30-2008 11:58 AM
Message 2 of 22
Anonymous
Not applicable

Re: So Credit limits are determined by how much one makes?

Considering that you have only had those accounts open for 8 months or so, its best to make sure you keep your balances low on those cards. That will raise your credit score. Within 2 years, if you have no late payments and low balances (with only half of your accounts or less carrying a balance) you will likely have a very nice credit score. At that point a bank might very well be willing to give you a high CL.
 
Some of your cards look like they have potential to grow, while others will probably not have much room. Lending standards vary by lender, but if your wife is in your household, her income will count for many lenders.
 
Taking that, with a longer history, you could conceivably reach 15-20k on an individual card, and up to 100% of your combined salaries in revolving credit lines. I am not recommending that - most people have no need to have that much rope with which to hang themselves, and in today's more restrictive credit market it might be much harder to reach those heights. That said, there are many posters on here who have high lines and total available credit relative to their incomes.
 
I recommend waiting a few months, paying down any balances you have and then requesting CLI from Chase, Hooters, and HSBC.
 
You always have quite a few cards right now for such a short history so I would avoid applying for new credit until you need it or your score has risen to the point where you are likely to get any card you want.
 
Goodluck! With time you can reach some high limits, just use them wisely.
Message 3 of 22
Anonymous
Not applicable

Re: So Credit limits are determined by how much one makes?

When I first started applying for credit cards when I lived at home I would use the total Combined Household Income on my applications......This being well over $150K per year.  I on the other hand worked 20 hours a week for $8 an hour.
 
They only know how much money you make by what you put on the application.  They look at your overall credit scores/reports to decide how much they want to basically lend you. 
 
Credit Card limits have nothing to do with how much money you make.
Message 4 of 22
Anonymous
Not applicable

Re: So Credit limits are determined by how much one makes?

 I think my low CLs are do to my lack of CC history. I have been at my job for 9 years and I have a mortgage and car payment. Both of which my payment history is flawless. I just got my house a year ago so they could be Leary of that. But I was smart and got a fixed % rate, I also got that house without any CC’s reporting on my CR.

 Who really know how they determine CLs. They need a standard to go by, not just a shot in the dark. If my Fico is 650, should my CL be the same as some one else with a 650 score? This is not the case, If ones score is 750 that does not mean you have good credit. It just means you have a high score. You could have a 700 score and have one baddie that makes you no different than some one with a 600 score.

 

         

 

Message 5 of 22
Anonymous
Not applicable

Re: So Credit limits are determined by how much one makes?

Thanks for the Input ya’ll. My flaw as a person is my patience. Lol, I go to fast to soon. Good for my work, bad everywhere else. I work as a manufacturing engineer so I want all those projects finished.

Message 6 of 22
MidnightVoice
Super Contributor

Re: So Credit limits are determined by how much one makes?



1111mel wrote:
When I first started applying for credit cards when I lived at home I would use the total Combined Household Income on my applications......This being well over $150K per year.  I on the other hand worked 20 hours a week for $8 an hour.
 
They only know how much money you make by what you put on the application.  They look at your overall credit scores/reports to decide how much they want to basically lend you. 
 
Credit Card limits have nothing to do with how much money you make.


They have quite a lot to do with how much money one tells them one makes, and telling them one makes more than one does could make one liable to fraid charges  Smiley Very Happy
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 7 of 22
Anonymous
Not applicable

Re: So Credit limits are determined by how much one makes?

this is not true, they DO have a LOT to do with how much you make. I just asked for an online credit line increase with BoA and one of the questions was how much was my gross annual income. I put in the truth and was approved instantly. How much you make DEFINITELY plays a role
Message 8 of 22
FretlessMayhem
Senior Contributor

Re: So Credit limits are determined by how much one makes?



@Anonymous wrote:
When I first started applying for credit cards when I lived at home I would use the total Combined Household Income on my applications......This being well over $150K per year. I on the other hand worked 20 hours a week for $8 an hour.
They only know how much money you make by what you put on the application. They look at your overall credit scores/reports to decide how much they want to basically lend you.
Credit Card limits have nothing to do with how much money you make.





Until you get the FR!
Here we go again...
Message 9 of 22
SonorityGenius
Established Contributor

Re: So Credit limits are determined by how much one makes?



@FretlessMayhem wrote:


@Anonymous wrote:
When I first started applying for credit cards when I lived at home I would use the total Combined Household Income on my applications......This being well over $150K per year. I on the other hand worked 20 hours a week for $8 an hour.
They only know how much money you make by what you put on the application. They look at your overall credit scores/reports to decide how much they want to basically lend you.
Credit Card limits have nothing to do with how much money you make.





Until you get the FR!

* * * Quoted for Preservation * * *
Message 10 of 22
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