topic Re: Does Current Credit Limit Amount Affect New Accounts in Credit Cards

Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 05:50:55 GMT

Do credit card companies look at other account credit limit on credit report to determine how much credit they will extend to the applicant?

Re: Does Current Credit Limit Amount Affect New Accounts

OmarGB9 — Wed, 09 Sep 2015 05:59:39 GMT

I'm sure they take a look, and maybe on some rare occasions they may match other limits/beat them, but in general, they use their own underwriting criteria to determine limits and APRs.

Re: Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 06:12:16 GMT

There is no standard every company has their own way of doing things but I would bet at least some do.

If you were a lender would you give a $20k line to someone whose highest limit elsewhere is $300?

Re: Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 06:14:49 GMT

Is this what this sentence means? It is found from Credit Limit Discover, "Another factor that comes into play is how much other outstanding credit you have available to you, such as through other credit cards."

"Outstanding credit?"

Re: Does Current Credit Limit Amount Affect New Accounts

OmarGB9 — Wed, 09 Sep 2015 06:15:33 GMT

No that refers more to overall credit extended to an individual. In other words, how much total credit you have versus your income. Someone with, say, $15k income would not get nearly as much credit extended to them as, say, someone with $100k income. Higher income qualifies one for higher limits across more cards.

Re: Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 06:21:16 GMT

Yes. That is my question. That, ""Another factor that comes into play is how much other outstanding credit you have available to you, such as through other credit cards." means they take into consideration how much credit they will extend to the applicant by reviewing how much other lenders have approved them of in the past. Sorry for my confusion.

Re: Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 10:18:44 GMT

AmEx matched my highest limit when I got my BCP. $18,400 is kind of a random number to pick unless they were looking at my other CL...

Re: Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 15:56:56 GMT

It's probably age util, and limits in that order.

I'm pretty sure no one discloses everything related to debt in their signature. Don't get mad frustrated or curious when someone has the same stuff in your signature gets approved for venture and you get a quick silver one! pay your stuff off and you probably could have had venture in other words.

Re: Does Current Credit Limit Amount Affect New Accounts

newhis — Wed, 09 Sep 2015 16:58:18 GMT

My DW got a Sallie Mae @ 3K. She called for recon, they asked several questions and how much she wanted, she said 10K, they said that the max they can authorize was 6K (matching her highest limit).

Re: Does Current Credit Limit Amount Affect New Accounts

Anonymous — Wed, 09 Sep 2015 17:36:47 GMT

@OmarGB9 wrote:
I'm sure they take a look, and maybe on some rare occasions they may match other limits/beat them, but in general, they use their own underwriting criteria to determine limits and APRs.

With the higher end cards, part of that underwriting criteria is experience with higher limits.

Re: Does Current Credit Limit Amount Affect New Accounts

happypill — Wed, 09 Sep 2015 18:32:37 GMT

Yes, experience with higher limits is definitely a factor. This is expecially true if you get a manual review I believe.

Re: Does Current Credit Limit Amount Affect New Accounts

LadyJEsq — Wed, 09 Sep 2015 19:03:46 GMT

I really don’t think so OP. After the last few days I’ve had, I’m starting to think that the UW are sitting in a room with a dart board and figuring out approval/denials and limits that way.

Over the Holiday weekend, I did a app spree because I was hoping to get my TCL up so that I could take full advantage of rewards on a couple of new cards that I had without causing a Util % over 5%. At the time of my spree, I had four cards, with three reporting immediately (my Rakuten Rewards card still hasn’t reported). With the three reporting, I had a TCL of $2800. I was approved for a Discover it card with a CL of $3500. Since this would only slightly improve my Util %, I continued applying. Much to my surprise, I was approved for both QS and V with CLs of $10k and $20k respectively. And this was prior to Discover reporting, so my TCL at the time of approval was $2800. This was also after three denials from other CCCs. I have no idea why Cap1 thought I was worthy of such a CL, and for awhile, I thought they would send me an update and say something along the lines of ‘after further review, we’ve adjusted your CL.’ I received my “Welcome” emails yesterday with the same limits, so I think I’m in the clear. Today, I contacted Discover to see if I could get a CLI because I feel that my income($100+k), credit score (698, not great I know) and payment history (100%) certainly support it and was denied. I was told to check back in 3mths.

Add that to my three denials. One being for a BofA card. I recon yesterday because I thought it was odd that I was declined considering I had a card (and several accounts) with them before, all closed in good standing. The woman I spoke to was extremely nice, but she upheld the denial. After being denied for the CTY card, I checked out reviews on the card (on Amazon) and saw several people complaining of denials even though they have perfect credit and no derogatory issues on their CRs.

So, from my recent experience, I don’t believe there is much rhyme or reason to what the CCCs do.