topic Re: Why Your Credit Card Limits Are Low in Credit Cards

Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 01:06:31 GMT

Your credit card limits are based on the total amount of credit you have divided by the total of card you have. That will be your minimum credit card limit for Excellent Credit Cards. Each Credit card has a maximum limit.

Consumer A:

Card 1: 10K

Card 2: 500

Card 3: 500

Card 4: 1500

Your total credit is 12K divided by 4 cards your average credit card limit 3k and that will be the minimum you will be approved for.

Consumer B:

Card 1: 12K

Card 2: 25K

Card 3: 17K

Card 4: 1500

Your total credit is 55.5K divided by 4 cards your average credit card limit 13.75K and that will be the minimum you will be approved for.

Build history with the credit card limits you have by increasing them to a fair amount. This will not work on below average cards. obtain 2 sub prime cards or prime card and everything else will fall into place. This will take several years to achieve high limits. and if you can pay off in full even better. no late payments mean i trust you. you got your finances in order. i can give you a high limit and you will not go on a shopping spree, take trips, or etc. he maintain his credit over a certain amount of year. here is a consumer that banks can trust.

Re: Why Your Credit Card Limits Are Low

DeeBee78 — Wed, 21 Mar 2018 01:32:35 GMT

@Anonymouswrote:
Your credit card limits are based on the total amount of credit you have divided by the total of card you have. That will be your minimum credit card limit for Excellent Credit Cards. Each Credit card has a maximum limit.

Consumer A:
Card 1: 10K
Card 2: 500
Card 3: 500
Card 4: 1500

Your total credit is 12K divided by 4 cards your average credit card limit 3k and that will be the minimum you will be approved for.

Consumer B:
Card 1: 12K
Card 2: 25K
Card 3: 17K
Card 4: 1500

Your total credit is 55.5K divided by 4 cards your average credit card limit 13.75K and that will be the minimum you will be approved for.

Build history with the credit card limits you have by increasing them to a fair amount. This will not work on below average cards. obtain 2 sub prime cards or prime card and everything else will fall into place. This will take several years to achieve high limits. and if you can pay off in full even better. no late payments mean i trust you. you got your finances in order. i can give you a high limit and you will not go on a shopping spree, take trips, or etc. he maintain his credit over a certain amount of year. here is a consumer that banks can trust.

While current card limits and averages can factor into some lending decisions (good luck getting a CSP or CSR without another $5K/$10K limit reporting) there's a lot more to it than just that. Your credit scores, DTI, AAoA, individual lender history, and a myriad of other factors can all play a role in what your starting limit could be.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 01:32:41 GMT

I had 30,000 in total credit (25k of it in retail cards) over 18 accounts (average limit would be about 1600) and was approved for a 3500 discover, so I think your system is flawed.

Re: Why Your Credit Card Limits Are Low

Remedios — Wed, 21 Mar 2018 01:33:55 GMT

Is there a secret decoder ring that goes with this?

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 01:34:33 GMT

@Remedioswrote:
Is there a secret decoder ring that goes with this?

Drink your Ovaltine.

Re: Why Your Credit Card Limits Are Low

coldfusion — Wed, 21 Mar 2018 01:45:22 GMT

I have the distinct impression that a regular either here or at That Other Forum was bored today.

Re: Why Your Credit Card Limits Are Low

jamesdwi — Wed, 21 Mar 2018 01:50:04 GMT

@Anonymouswrote:
Your credit card limits are based on the total amount of credit you have divided by the total of card you have. That will be your minimum credit card limit for Excellent Credit Cards. Each Credit card has a maximum limit.

Consumer A:
Card 1: 10K
Card 2: 500
Card 3: 500
Card 4: 1500

Your total credit is 12K divided by 4 cards your average credit card limit 3k and that will be the minimum you will be approved for.

Consumer B:
Card 1: 12K
Card 2: 25K
Card 3: 17K
Card 4: 1500

Your total credit is 55.5K divided by 4 cards your average credit card limit 13.75K and that will be the minimum you will be approved for.

Build history with the credit card limits you have by increasing them to a fair amount. This will not work on below average cards. obtain 2 sub prime cards or prime card and everything else will fall into place. This will take several years to achieve high limits. and if you can pay off in full even better. no late payments mean i trust you. you got your finances in order. i can give you a high limit and you will not go on a shopping spree, take trips, or etc. he maintain his credit over a certain amount of year. here is a consumer that banks can trust.

card holder A has what I call chance cards, when prime lenders give you a card with a $500 limit or even a $1000 with some lenders, the lender is giving you a chance to prove your self to them. But even after you have proved your self to the lender the $500 cards won't grow or will grow extremely slow. Its best to sock drawer card after you have improved your internal score with the lender and your over all credit profile looks better, apply for a new card from the lender. Once you have a card with a $2k or greater limit this card will grow faster. If you read this site you will find lots of people that get saddled with the $500 limit cards and report the card never grows or it requires intervention from Execute Office or other extremes. Note this doesn't include $500 cards that are given to customers that allready have an extensive history with a lender but may just be at the max exposure with the lender.

I have even seen this pattern on cards that came from a lender that was aquired by another company, not sure if the low SL causes this or is this some other internal flag that causes this behavior. For instance CapitalOne bought out citibank BestBuy mastercards, yet they refused to grow even though I had numerous better cards.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 01:51:51 GMT

Obviously this "logic" (if we want to call it that) doesn't make any sense. Anyone could rattle off a dozen examples of ways it wouldn't/couldn't work that way.

Re: Why Your Credit Card Limits Are Low

fltireguy — Wed, 21 Mar 2018 02:37:14 GMT

Complete BS and a flawed theory...

So, I have 37 open major credit card accounts (MC/Visa/Amex), from at least 24 lenders (and, Yes, 37 is a true number). CL range from 500-25000.

Based on this theory, and total limits on these cards of 203150, the NFCU card that I was approved for would have a CL of 5490, or 5500 if we round it off. But it was issued with a 12900 CL. And the card before that were 10000 and 15000..

So much for that logic

Re: Why Your Credit Card Limits Are Low

NRB525 — Wed, 21 Mar 2018 03:28:53 GMT

@fltireguywrote:
Complete BS and a flawed theory...

So, I have 37 open major credit card accounts (MC/Visa/Amex), from at least 24 lenders (and, Yes, 37 is a true number). CL range from 500-25000.

Based on this theory, and total limits on these cards of 203150, the NFCU card that I was approved for would have a CL of 5490, or 5500 if we round it off. But it was issued with a 12900 CL. And the card before that were 10000 and 15000..

So much for that logic

Hey, all you commenters above, you did not read closely enough. OP predicts the minimum Starting Line to expect based on your average, not the exact limit.

The problem is if you app for your first AMEX revolver after you have cards, you are still likely to get a $1k or maybe a $2k limit. I got a $2k limit in 2013 when average line was a lot more than that.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 06:09:18 GMT

Well... the OP certainly started his first day posting with a bang.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 11:03:36 GMT

I have over 50 personal cards. not including business card & corporate cards and the only cards are below 10k for me is store cards and secured that never graduated but I hold it cause it has the longest history. What im saying is that if you you have over 10 cards and most of them are below 10k don't apply for more card until 8 of them have a credit limit of 10k..........as I said in my post it takes several years to achieve this........oh and you want higher credit limit you will have to dive into those large annual fees........but who can give out free money just to be a card holder.........

yes a lot of factors does play a role........you salary will cap you also.......if you only make 50K it usually 5 times your salary that they will allow a consumer to have, but that could have change.......

most people get cards just to be getting them ........if you have 37 cards and not paying over 5K for annual fees, then you are looking for their low tier cards and not their best cards............

system is not flawed........system is perfect actually.......get 2 card with a 10k limit.......if you apply for a card and get 5k.......then don't apply for another card, build that card limit to 10K. while you building that limit to 10K the 2 cards that you already have at 10K be building that limit also.........

so what is happening is you building a long history while increasing your limits at the same time.........so it took two years to build that card to 10K.........better report when you apply for a new card......no new accounts........keep your dti low.........and all of your cards will have age 2 years..........now apply for 1 more card. this time limit might be 7.5k..........build that to 10K while increasing your other cards along the way........think of it as a debt snow ball effect.........

don't apply for 4 cards with a 6 months and expect all of their limits to be 10K.......you can do this and you will be approve, but you will have to build all 4 cards to 10K before you apply for another card........thats why I say it takes several years..........

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 13:37:16 GMT

The OP no doubt has this all figured out!

Seriously, though, these blanket statement type posts are never going to apply to ever profile.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 13:55:03 GMT

I don't have it all figure out......what I'm saying is this. if you have a capital quickone and your credit limit is 2K......they will cap you based on your usage and how you pay them. now the model will change if you have lets say amex blue, everyday, sky miles.....you use them more than your capital one. as a matter of fact. you sock drawer the capital one. and uses your amex cards for two years.......and no usage for 2 years on your capital one. do you believe you will get a credit limit increase with Capone? or would you take your chance on your relationship with amex since you have been using their card for 2 years.

thats like walking into a bank and asking for 25K loan with a bank you never done business and you never have previous loans with any other institutions, if you have a mortgage, car loan, personal loan, with any company your success rate is higher of being approves with banks you already had did business with in the past.......and thats goes with credit card too.

my statement is not blanket...... what im saying is it takes time to build a relationship with a bank. get one card build credit limit up, apply for another card with the same issuer of your previous card build that card and the previous card you already have.

So in layman term, build your history with one bank at a time.......before going to several different banks.........it's really easy.....to understand.....would you loan money to friend that always paid you back no matter what or would you loan money to a friend who who doesn't pay anybody back......the friend that pay you pack.....make you more comfortable loaning them money because that friend pays his debt.......same method banks uses

Re: Why Your Credit Card Limits Are Low

K-in-Boston — Wed, 21 Mar 2018 14:04:42 GMT

@Anonymouswrote:

thats like walking into a bank and asking for 25K loan with a bank you never done business and you never have previous loans with any other institutions, if you have a mortgage, car loan, personal loan, with any company your success rate is higher of being approves with banks you already had did business with in the past.......and thats goes with credit card too.

That's why we have credit reports and credit scores.

@Anonymouswrote:

my statement is not blanket...... what im saying is it takes time to build a relationship with a bank. get one card build credit limit up, apply for another card with the same issuer of your previous card build that card and the previous card you already have.

So in layman term, build your history with one bank at a time.......before going to several different banks.........it's really easy.....to understand.....would you loan money to friend that always paid you back no matter what or would you loan money to a friend who who doesn't pay anybody back......the friend that pay you pack.....make you more comfortable loaning them money because that friend pays his debt.......same method banks uses

I've had banks give me $20k+ starting lines with no previous relationship and I've had banks give me low $5k starting lines with a long-established relationship. You really lost me with the last part, though. That's not really describing being rewarded by a bank for your relationship over time with them; that's just maintaining positive credit history which along with the ability to repay is most of what lenders are looking for.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 14:31:05 GMT

@K-in-Boston

you are correct, but I can certain mostly like guarantee that it took you a while to obtain that credit report of yours. when they gave you 5K was that your first card or do you have several cards with that same issuer.......that would be my question to you

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 14:41:29 GMT

My average was somewhere between $7K and $8K when Chase approved me for $15.7K.

Now your formula is sometimes used in business credit. You don't want to be the highest, nor the lowest. Somewhere in between to build a relationship.

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 14:48:34 GMT

@Remedioswrote:
Is there a secret decoder ring that goes with this?

Tell.me.more!

Re: Why Your Credit Card Limits Are Low

Anonymous — Wed, 21 Mar 2018 15:21:03 GMT

Again, OP, your statements are of the blanket variety and cannot be applied to every situation, as evidenced by the replies you're getting from members above that aren't in line with what you're saying.

Re: Why Your Credit Card Limits Are Low

expatCanuck — Wed, 21 Mar 2018 15:33:20 GMT

One more data point -- in December, I had an average limit of 10K/card, over 4 cards.

Chase issued a CSP to me with a limit of 19 (which I subsequently reduced, but that's another story).