Credit Cards

[tacaza]

I was approved for the Amex SPG on 9/4 and received the card yesterday. What surprised me was that Amex gave me the best interest rate @ 15.24%, yet started me out at 2k limit again. So my question is what factors in a credit report that lenders use to determine credit limit? Aren't they averaging the limit on all your cards and give you one that is close to if not above your average? Any advice would be greatly appreciated! 

[bribro]

Your credit score/history, existing credit lines, and income are the big ones.

[AF_23]

You already have an existing account with a large credit line with AmEx.. that has everything to do with it in this case.

[firesoul453]

I don't think income has too much to do with it, atleast with chase and citi. My credit limit with chase is 20% of my income (and I only make 12500 a year) and citi gave more more than %40 of my income!

capital one on  the other hand, %6 of my income is the limit, and even with their yearly review, I don't qualify for a CLI

[jamesdwi]

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firesoul453 wrote:

I don't think income has too much to do with it, atleast with chase and citi. My credit limit with chase is 20% of my income (and I only make 12500 a year) and citi gave more more than %40 of my income!

capital one on  the other hand, %6 of my income is the limit, and even with their yearly review, I don't qualify for a CLI

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Yes income has a lot to do with your CL, sure it doesn't do much when  your just rebuilding or starting out with credit no one is going to give you more than a 2k CL no matter what your income is.   But once you have established a good payment history and a decent FICO score, your imcome will stand in the way of getting high CL cards.  Who is going to give you a 25k CL when th even the minimum payment is more than your net take home pay for the month.

[tacaza]

Thanks for replying guys! While my income is very close to my DW's, she was approved for the same card yesterday with 12k limit. Perhaps Amex didn't like my tiny aaoa.