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What determines maximum credit limits, income or use?

Valued Contributor

What determines maximum credit limits, income or use?

It's probably a given that someone who makes $100k+ per year and has decent credit will be more likely to obtain high credit lines.  But in general, is there much of a relation between a maximum credit limit and income?

 

I was self employed until 2008. Mostly showed income around $50k with a max of just over $100k one year. But, a lot of my major credit cards were used for business expenses. I'd run $50k-$100k through them some months and pay the new balance in full. The limits on those cards kept going up. They were in the $25-$80k range. Now that I think about it, I don't think I ever had to verify income. I just listed what I made and that was it. I guess the use and payments more than justified it. 

 

I wish I would have kept track of my credit scores then because I wonder what they were. 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $16,400. / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / Penney - $10,000 / Barclay Apple Rewards - $4000 / Merrick - $2500


EQ - 740 / TU - 748 / EX - 748
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4 REPLIES
Frequent Contributor

Re: What determines maximum credit limits, income or use?

Your Credit Score, AAoA, Payment History and Annual income [ to some extent] only. Also, it dependens on undrelying bank which have defined risk score modle to assign credit limit. 

USBank Cash+(14K)/Penfed Rewards Visa Sigg (25K)/ Penfed Promise card (5K)/ Penfed Amex Travel Rewards card(20K)/AMEX ZYNC (NPSL)/AMEX Startwood(9K)/AMEX COSTCO(5K)/AMEX EVERY DAY (10K)/AMEX HILTON HONOURS (8K)/CHASE FREEDOM(4K)/Chase Salte(12K)/AMEX Fidelity Investments(7.5K)/BOA Better Balance Rewards(5K)/BoA Travel Signature Card (10K)/BoA rewards cards (15K)/AMEX MACYS(6K)/Barclaycard Rewards(3K)/Salie Mea (5K)/DISCOVER IT(7K)/ DCU VISA Platinum Card(7.5K)/PAYPAL MASTER CARD(8K)/GAP(4.5K)/US Bank Flex Rewards (6K)/ Best Buy (4k)/Gymbore Visa card(6K)/ TARGET(600)/CHILDREN PLACE(900)/WALMART DISCOVER(8K)/TOY R US MASTER CARD(8K)/JCP(4K)/KOHLS(400)– Total 31 Cards
Message 2 of 5
Valued Contributor

Re: What determines maximum credit limits, income or use?


wajidkhanp wrote:

Your Credit Score, AAoA, Payment History and Annual income [ to some extent] only. Also, it dependens on undrelying bank which have defined risk score modle to assign credit limit. 


I wonder if guidelines have substancially changed over since the mid '90s.  My credit wasn't that great back then (dumb credit choices when I was younger). My credit really took off after I started doing my own thing in the late '90s.  Back then I would say that I bought my credit back because I was using the cards for my business and giving them a lot of use. The limits really went up quick and I had no problem buying a house, multiple $30k-$50k car loans ect, ect... 

 

Now, my income isn't close to what it was before, I probably only put about $800. on my cards each money and it's a long, slow climb back to having good credit. 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $16,400. / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / Penney - $10,000 / Barclay Apple Rewards - $4000 / Merrick - $2500


EQ - 740 / TU - 748 / EX - 748
Message 3 of 5
Valued Contributor

Re: What determines maximum credit limits, income or use?


masscredit wrote:

wajidkhanp wrote:

Your Credit Score, AAoA, Payment History and Annual income [ to some extent] only. Also, it dependens on undrelying bank which have defined risk score modle to assign credit limit. 


I wonder if guidelines have substancially changed over since the mid '90s.  My credit wasn't that great back then (dumb credit choices when I was younger). My credit really took off after I started doing my own thing in the late '90s.  Back then I would say that I bought my credit back because I was using the cards for my business and giving them a lot of use. The limits really went up quick and I had no problem buying a house, multiple $30k-$50k car loans ect, ect... 

 

Now, my income isn't close to what it was before, I probably only put about $800. on my cards each money and it's a long, slow climb back to having good credit. 


Yes they have. Back then (and even as recently as 2006) banks were handing out credit to almost anyone with a pulse. Since the GFC they've tightened up credit standards in an attempt to limit their exposure to bad debts. They've loosened up a bit in the past year or two, but it's still nothing like what it was 5-15 years ago.

EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Message 4 of 5
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Frequent Contributor

Re: What determines maximum credit limits, income or use?

Agree
USBank Cash+(14K)/Penfed Rewards Visa Sigg (25K)/ Penfed Promise card (5K)/ Penfed Amex Travel Rewards card(20K)/AMEX ZYNC (NPSL)/AMEX Startwood(9K)/AMEX COSTCO(5K)/AMEX EVERY DAY (10K)/AMEX HILTON HONOURS (8K)/CHASE FREEDOM(4K)/Chase Salte(12K)/AMEX Fidelity Investments(7.5K)/BOA Better Balance Rewards(5K)/BoA Travel Signature Card (10K)/BoA rewards cards (15K)/AMEX MACYS(6K)/Barclaycard Rewards(3K)/Salie Mea (5K)/DISCOVER IT(7K)/ DCU VISA Platinum Card(7.5K)/PAYPAL MASTER CARD(8K)/GAP(4.5K)/US Bank Flex Rewards (6K)/ Best Buy (4k)/Gymbore Visa card(6K)/ TARGET(600)/CHILDREN PLACE(900)/WALMART DISCOVER(8K)/TOY R US MASTER CARD(8K)/JCP(4K)/KOHLS(400)– Total 31 Cards
Message 5 of 5