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Valued Member
Posts: 45
Registered: ‎03-26-2010
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What factors used to determine credit limit?

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! 

Valued Contributor
Posts: 1,367
Registered: ‎04-20-2012
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Re: What factors used to determine credit limit?

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

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Frequent Contributor
Posts: 288
Registered: ‎02-06-2012
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Re: What factors used to determine credit limit?

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

Contributor
Posts: 150
Registered: ‎08-24-2012
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Re: What factors used to determine credit limit?

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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a JP Morgan Palladium card
Valued Contributor
Posts: 2,233
Registered: ‎09-16-2011
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Re: What factors used to determine credit limit?

[ Edited ]

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


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.

Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 12k Sally Mae5k Sams Club MC 10k, Paypal Extras MC 6k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5k, Walmart 10k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 10k and a nice stack of store cards.
Last APP/HP 4/22/2015
Valued Member
Posts: 45
Registered: ‎03-26-2010
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Re: What factors used to determine credit limit?

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. :smileyhappy: 

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