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Valued Contributor
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Registered: ‎07-17-2012
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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. 

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Regular Contributor
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Registered: ‎02-08-2013
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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. 

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Valued Contributor
Posts: 1,161
Registered: ‎07-17-2012
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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. 

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|****$10500***|****$9000*****|****$8000*****|****$3200****|****$1600****|****$3000****|*****$3000*****|****$2500****|
EX - 684 | TU - 680 | EQ - 686 | EQ 04 - 712
Valued Contributor
Posts: 2,300
Registered: ‎01-22-2012
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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.

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Regular Contributor
Posts: 244
Registered: ‎02-08-2013
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Re: What determines maximum credit limits, income or use?

Agree
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