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How do you start getting high credit card limits? I see some of you guys/girls with 15k-30k in credit card limits, and am nowhere near that. I got:
My credit score is not perfect, one T-Mobile collection that wont budge from 2008, but I pay on time and usually don’t hold a balance. At this point, is it better to start applying for bigger credit cards (discover it, chase freedom), or should I keep what I have and ask for a CL increase at the 6 and 12 month?
Your credit cards are still pretty new. That and the collection account might make lenders nervous. Those people that have the limits you mentioned likely had a number of their accounts for many years, and worked hard to grow them. They also might have a different income, job history, etc.
It is not impossible for you to find a lender that will grant you higher limits, some people seem to be able to get them even with negatives on their credit reports. I would try to grow the accounts you have, but you might find success with a credit union locally. They tend to give generous limits. You could also try the preapproval link with Amex, Chase etc. Good luck to you.
@ori68 wrote:How do you start getting high credit card limits? I see some of you guys/girls with 15k-30k in credit card limits, and am nowhere near that. I got:
- WF card 2500 (original CL 2000) opened march 2013
- Credit One Bank 600 (original 400) opened December 2013
- Capital One 300, opened January 2014.
My credit score is not perfect, one T-Mobile collection that wont budge from 2008, but I pay on time and usually don’t hold a balance. At this point, is it better to start applying for bigger credit cards (discover it, chase freedom), or should I keep what I have and ask for a CL increase at the 6 and 12 month?
The people who have individual cards with $15-$30k limits either have super incomes or long-term relationships with the cc companies (often including savings, checking, or investment accounts with the issuing banks). None of us mere mortals get into that territory -- not quickly, anyhow. Having that much credit overall (meaning the total of the CLs on all our cards) is pretty realistic even for lowish income people like me, but it takes time and excellent habits.
IMHO, a realistic aim for somebody whose credit is so new and so limited is maybe to shoot for getting one lender to give you one $5k CL in the next couple of years. (That's without knowing your income, but the main thing is don't aim unrealistically high.) Things can then progress from there.
With credit as new as yours, and with a collection on your records, you should absolutely sit with what you've got right now. After six months or a year, you might want to try for Discover IT or Chase Freedom and start nagging CapitalOne for a CLI (they can be stubborn about giving them, but it's an SP). Eventually you'll want to dump that CreditOne card. But for now I'd keep it as a builder.
And as somebody else here will be bound to tell you if I don't say it first: building credit is a marathon, not a sprint. Good luck!
I would suspect that most creditors dont grant CLIs to help the consumer increase their credit score, but rathet to make more money.
I would also suspect that their research shows that most consumers are creatures of habit, and tend to maintain past % util levels once granted a CLI.
If your past % util has consistently run high, that would be an indication that you are relying on your CLs for spending, and thus when your CLs become exhausted, you may have problems making payments. I would suspect that such usage might trigger a possible CL decrease rather than an increase.
However, if you have consistently maintained a reasonable % util, grant of a CLI would most likely be beneficial to the creditor, without much additional risk.
If you are that normal creature of habit, you will tned to maintain approx the same % util, and thus your dollar balance will increase, resulting in more interest $ in their pocket.
My speculation is thus that prior % util levels on your existing account would be a major factor.
To get data on your expected % util pattern would oblviously require a period of time, probably around a year or so.
They could also do an account review by pulling your CR and seeing your % util on other accounts, thus seeing if your util with them represents your overall % util pattern.
@ori68 wrote:How do you start getting high credit card limits? I see some of you guys/girls with 15k-30k in credit card limits, and am nowhere near that. I got:
- WF card 2500 (original CL 2000) opened march 2013
- Credit One Bank 600 (original 400) opened December 2013
- Capital One 300, opened January 2014.
My credit score is not perfect, one T-Mobile collection that wont budge from 2008, but I pay on time and usually don’t hold a balance. At this point, is it better to start applying for bigger credit cards (discover it, chase freedom), or should I keep what I have and ask for a CL increase at the 6 and 12 month?
Time heals all wounds and you need to deal with the right bank or CU as well. The 3 you have now are not going to be ones that will easily give you 5 figure CLs even with clean reports.
Thanks for the responses all. Well my income is not too high, 35-38k a year. I dont have much debt, my vehicle is paid for and my housing is free. I tend to keep my utilization low, but occasianally i buy big ticket items and my utilization gets reported higher then it usually is. In regards to higher credit limit compans, who should I be applying to next?
Student loan, 4 years into a 10 year loan (longest/oldest loan)
1 secured personal loan, 3 months into a 6 month loan
1 unsecured personal loan 3 months into a 10 month loan