Toy Limit Affect

[Drew]

Hi All -

I finally decided to close out my Target REDcard.  The measly $300 limit was not budging after 2 years and $70,000 worth of credit later.  In fact, my average credit limit comes out to $8000 per card across all cards including retail.  It hurt to do it, but c'est la vie.

So, here's my question:

Do you guys believe in the "toy limit affect"?  A big part of the reason I closed the card is because I felt small credit limits would hold me back from getting higher CLI's and initial CL's from creditors.  In other words, high limits beget high limits, low limits beget low limits.  I've seen an old thread where this was discussed and felt it had some merit.

I look forward to your feedback.

[Creditaddict]

I don't think it is/was holding you back because like you said your average is $8k... Some have had success closing the toy Target and going back and applying for new target and getting MUCH better lines... If you shop at Target still then might be worth it.

[Vegas247]

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@Drew wrote:

Hi All -

I finally decided to close out my Target REDcard.  The measly $300 limit was not budging after 2 years and $70,000 worth of credit later.  In fact, my average credit limit comes out to $8000 per card across all cards including retail.  It hurt to do it, but c'est la vie.

So, here's my question:

Do you guys believe in the "toy limit affect"?  A big part of the reason I closed the card is because I felt small credit limits would hold me back from getting higher CLI's and initial CL's from creditors.  In other words, high limits beget high limits, low limits beget low limits.  I've seen an old thread where this was discussed and felt it had some merit.

I look forward to your feedback.

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YES and NO.....Toy limits won't affect Automated underwiting (instant approvals) example AMEX gives you an instant approval you get CLI 61 days then every 6 months....

If you need to recon, let's say Chase or Barclay for a CLI....their manual underwriter might consider why take a chance, when all limits are small.....so yes and no  

[clocktick]

I had a toy limit on a Lowes card so closed it and opened a new one - I've had more success with that new one than I ever had with the old one.  Of course, my CRs were getting increasingly better too.  Not sure if that original Lowes card would be where my newer one is now.

[Involver]

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@Vegas247 wrote:

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@Drew wrote:

Hi All -

I finally decided to close out my Target REDcard.  The measly $300 limit was not budging after 2 years and $70,000 worth of credit later.  In fact, my average credit limit comes out to $8000 per card across all cards including retail.  It hurt to do it, but c'est la vie.

So, here's my question:

Do you guys believe in the "toy limit affect"?  A big part of the reason I closed the card is because I felt small credit limits would hold me back from getting higher CLI's and initial CL's from creditors.  In other words, high limits beget high limits, low limits beget low limits.  I've seen an old thread where this was discussed and felt it had some merit.

I look forward to your feedback.

---

YES and NO.....Toy limits won't affect Automated underwiting (instant approvals) example AMEX gives you an instant approval you get CLI 61 days then every 6 months....

If you need to recon, let's say Chase or Barclay for a CLI....their manual underwriter might consider why take a chance, when all limits are small.....so yes and no  

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When I recon'd my Chase CLI yesterday the underwriter specifically mentioned giving me the limit she did based on other cards in my portfolio, however it was based solely upon the lowest of my "high limit" lines and not the toy limit cards I still keep going (a secured Cap One with a $300 limit that I'll be closing later this year).  So from my own personal experience, the older low limit cards should not hold you back.

[user5387]

Toy limits don't affect FICO scoring, but certainly can affect manual underwriting or the automated systems used by specific lenders.

[Drew]

Underwriters are whom I'm specifically concerned with.