Valued Member
tacaza
Posts: 42
Registered: ‎03-26-2010
What factors used to determine credit limit?

‎09-07-2012 10:10 AM

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! 

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Established Contributor
bribro
Posts: 876
Registered: ‎04-20-2012
Re: What factors used to determine credit limit?

‎09-07-2012 10:14 AM

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

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J.P. Morgan Palladium ($100k x3) | Citi Dividend World Elite MC w/EMV ($20k) | Chase Sapphire Preferred Visa Signature ($25k) | Chase Ink Bold World Elite MC ($25k Flex) | Chase Freedom Visa Signature ($25k) | Chase Freedom World MC ($25k) | Chase MileagePlus Explorer Visa Signature ($15k) | AmEx Blue Sky ($22.5k) | Lexus Financial Services ($30k) | Capital One Store Credit ($6k) | GE Money Store Credit ($3k) | WFNNB Store Credit ($2k) | Macy's Store Credit ($2k)
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Frequent Contributor
AF_23
Posts: 288
Registered: ‎02-06-2012
Re: What factors used to determine credit limit?

‎09-07-2012 10:26 AM

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

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Contributor
firesoul453
Posts: 138
Registered: ‎08-24-2012
Re: What factors used to determine credit limit?

‎09-07-2012 10:33 AM

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
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Valued Contributor
jamesdwi
Posts: 1,084
Registered: ‎09-16-2011
Re: What factors used to determine credit limit?
[ Edited ]

‎09-07-2012 10:45 AM - edited ‎09-07-2012 10:46 AM

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.

Wallet: FNBO DISC 7.5k, , Chase Freedom 3k & Slate 3k, AMEX BCP 7.5k & AMEX Hilton Surpass 5.5k & Zync NPSL, Walmart 3.3k, CapOne AU 1.5k
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Valued Member
tacaza
Posts: 42
Registered: ‎03-26-2010
Re: What factors used to determine credit limit?

‎09-07-2012 11:29 AM

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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