topic Re: $5000 Credit Limits in Credit Cards

$5000 Credit Limits

creditconcept — Sun, 08 Mar 2015 16:36:02 GMT

In you all's opinion, is a $5000 CL the demarcation point between a "toy limit" and a "respectable" limit? I'm not talking about for the MyFico community, because I know we never stop there, But just curious as both Capital One and BoA websites say that $5000 CL makes you a made man.

Re: $5000 Credit Limits

NRB525 — Sun, 08 Mar 2015 16:38:59 GMT

@creditconcept wrote:
In you all's opinion, is a $5000 CL the demarcation point between a "toy limit" and a "respectable" limit? I'm not talking about for the MyFico community, because I know we never stop there, But just curious as both Capital One and BoA websites say that $5000 CL makes you a made man.

lol

Not sure I follow this. So if CapOne tells me I have to pop a cap in someone, I have to?

Re: $5000 Credit Limits

creditconcept — Sun, 08 Mar 2015 16:42:36 GMT

Lol wow didn't even catch that, what a bad choice of words
But no, both of their websites have little links that explain what they consider to be """Excellent Credit""" , and both mention having 1 card with a $5k limit. And I learned a few weeks ago that CSP starts at only 5k, so I'm just curious why $5 what choosen as the magic number

Re: $5000 Credit Limits

Open123 — Sun, 08 Mar 2015 16:43:50 GMT

For me, $5,000 is more than enough for 99% of my cards, especially with the 5% rotating bonus cards where the rewards are capped at $750/$1,500/$2,000 per quarter.

Only on non-bonus spend cards where I use for large bills (taxes, leases, vacations, etc...) would I need a larger CL. And, for most CC rewards enthusiasts, there's usually only 1 or 2 cards we designate for "general" non-bonus specific spending, unless during a period of cycling sign-up bonuses.

In my view, $5,000 is my preferred CL. I request CLDs to $5K whenever a non-general spending card issues me a higher CL.

Re: $5000 Credit Limits

js0319 — Sun, 08 Mar 2015 16:45:54 GMT

$5000 just happens to be the point which you can qualify for a signature card. In general, I consider a toy limit something around $250 to $1000, and nothing really happens further beyond that as far as card growth. There are cars out there that might give you a $1500 or $2000 limit, but can potentially grow into larger limits. Sallie Mae is a prime example. Many people are approved with lower limits on this card, but the card has potential to grow into something of greater value. A toy limit on the card can also be considered by many that you just barely qualified for the card.

Re: $5000 Credit Limits

Open123 — Sun, 08 Mar 2015 16:51:04 GMT

Not sure if anyone remembers, but the only true toy limit card I've run across was the old BBRZ card issued HSBC. It came with a $100 CL with an initial $19.95 fee, which resulted in an effective $80.05 available credit upon approval.

Re: $5000 Credit Limits

Anonymous — Sun, 08 Mar 2015 16:53:49 GMT

No. A made man is the one who says who gets capped when.

Re: $5000 Credit Limits

KneelBeforeZod — Sun, 08 Mar 2015 17:02:41 GMT

I also agree with the comment above and think the 5K limit is a guidance bulletpoint that they use to help consumers decide whether they should apply.

It's hard for me to take anything either of those two banks (or any other bank for that matter) suggest as gospel. The rules and standards can change with the wind, per se.

Re: $5000 Credit Limits

TRC_WA — Sun, 08 Mar 2015 17:10:24 GMT

$5k limits are becoming the norm for me... and my biggest card is $10k which I think is pretty respectable considering the fact I'm not humping NFCU's leg.

There was a time though when I thought a $1k limit was out of this world awesome...

Re: $5000 Credit Limits

Imhotrodcrazy — Sun, 08 Mar 2015 17:10:59 GMT

For me, a good cl is 10k, that way I never need to worry about utility, no matter what I buy/charge. Hope this doesn't sound greedy, it's not meant to sound like that, it's just my opinion.

Re: $5000 Credit Limits

KneelBeforeZod — Sun, 08 Mar 2015 17:12:47 GMT

TRC_WA...lol. Ain't that the truth. I remember getting my first card with a 1k limit and being on cloud 9. I still remember getting my first card with a 10k limit out the gate from Discover and almost falling out of my chair. It's a funny feeling when you make it to prime country.

Re: $5000 Credit Limits

Anonymous — Sun, 08 Mar 2015 17:14:51 GMT

5K unsecured means you are prime.

Re: $5000 Credit Limits

Open123 — Sun, 08 Mar 2015 17:16:06 GMT

@TRC_WA wrote:
$5k limits are becoming the norm for me... and my biggest card is $10k which I think is pretty respectable considering the fact I'm not humping NFCU's leg.

Oh, man, this cracked me up! LMAO Almost spit out my coffee.

Re: $5000 Credit Limits

TRC_WA — Sun, 08 Mar 2015 17:24:11 GMT

@Open123 wrote:
@TRC_WA wrote:
$5k limits are becoming the norm for me... and my biggest card is $10k which I think is pretty respectable considering the fact I'm not humping NFCU's leg.
Oh, man, this cracked me up! LMAO Almost spit out my coffee.

It was my first thought and I couldn't resist.

We all know how NFCU is the greatest thing since sliced bread and spits out $10-$15k limits at people who have no experience or credit profiles to support such a limit.... so the fact I got there without their help has me feeling pretty good.

Re: $5000 Credit Limits

Anonymous — Sun, 08 Mar 2015 17:25:07 GMT

You makin fun of my NFCU 5 digit goodness?

Re: $5000 Credit Limits

TRC_WA — Sun, 08 Mar 2015 17:27:59 GMT

@Anonymous wrote:
You makin fun of my NFCU 5 digit goodness?

Not yours specifically... more the people who file BK7 and within 2 months have a $15k NFCU card when their highest other card is $2k.

Am I jealous? Not really. Just a bit annoyed at how BK7 people who burn creditors 100% seem to get more love than I did when I started my rebuild... and I paid my creditors back over 4 years.

Re: $5000 Credit Limits

Anonymous — Sun, 08 Mar 2015 17:43:12 GMT

I'd say it varies from person to person. If I can't put my monthly spend on it plus a buffer for util and unexpected expenses, then it is effectively a toy limit.

That being said I think $5k limits, particularly from prime lenders is a good accomplishment showing success in establishing good credit.

I don't undertstand the knocking on NFCU. Even if their underwriting is more lax than others their credit lines are just as "green" as any other prime lender. Money is money.

Re: $5000 Credit Limits

Anonymous — Sun, 08 Mar 2015 17:43:02 GMT

Re: $5000 Credit Limits

chwebb1 — Sun, 08 Mar 2015 17:46:40 GMT

@creditconcept wrote:
In you all's opinion, is a $5000 CL the demarcation point between a "toy limit" and a "respectable" limit? I'm not talking about for the MyFico community, because I know we never stop there, But just curious as both Capital One and BoA websites say that $5000 CL makes you a made man.

It's my opinion that a $5000 CL is pretty good. It seems to me like it should be large enough to make whatever purchase(s) you need to make without going over your CL. The largest single purchase I've personally made is less than $3000, so $5000 is definitely enough for me right now.

Re: $5000 Credit Limits

core — Sun, 08 Mar 2015 17:52:40 GMT

From reading posts here I have come to the conclusion: A toy limit is a limit that was perfectly fine for the cardholder's needs for all the years they held the card, until the one day they asked for a CLI that they didn't even need and got denied. Now it's a toy limit and suddenly the card is useless. Into the SD it goes.