topic Re: How to get a very high credit on low income but high net worth in Credit Cards

How to get a very high credit on low income but high net worth

Anonymous — Wed, 04 Dec 2019 21:30:00 GMT

Hi all,

I’m new to the forum, so I apologize if this question was asked, but I looked all over Google and couldn’t find an answer to my question.

I’m a relatively young guy, so my credit history isn’t that long, and my income is okay, but nothing crazy (less than $100k/year).

I buy sports tickets for friends and family once a year that I’m reimbursed for by them. I’m buying for more people every year, so my expenses when I buy these can get quite high (close to $50k). I buy these for other people, because I’m able to get a better price from the broker by buying more tickets at once.

Every year, it gets harder and harder for me to make the purchase, because I’m getting closer to my credit limit.

My assets are pretty high, because I got lucky by buying bitcoins several years ago.

It seems like credit card companies base your credit limit based on income, but not on your assets. Is it possible for me to disclose my assets to get a high credit limit? I’ve asked this to the credit card company like 5 different times, and they said no, but shouldn’t assets be super important to determine credit???

Ideally, I’d like a credit limit between $50-100k, so I don’t need to worry about my credit limit every year.

Thank you!

Re: How to get a very high credit on low income but high net worth

K-in-Boston — Wed, 04 Dec 2019 21:43:01 GMT

With certain lenders, assets can be not only added but encouraged. Amex will usually have a field for assets on all applications and CLI request forms.

Is there a particular bank you have the majority of your holdings with? Are you a Chase Private Client, Bank of American Honors, etc.?

Re: How to get a very high credit on low income but high net worth

Anonymous — Wed, 04 Dec 2019 21:53:00 GMT

Thank you for your quick response. I honestly barely keep any money in my bank. I keep nearly 100% in my investment portfolio, and the small chunk of money I do keep in a bank is in a local credit union.

I’d like to have the credit limit increase on my capital one savor card. Since these are sports tickets, I get 4% cash back. Do you know if I can disclose assets to them? (Several workers said no, but again I don’t know if they are just blowing me off)

I’m just wondering but does having your home paid off help you to get a higher credit, since I’d have more home equity? I’m planning to pay 100% of my mortgage down next year, since I have a lot of cash sitting in my investment account.

Re: How to get a very high credit on low income but high net worth

AverageJoesCredit — Wed, 04 Dec 2019 22:41:48 GMT

I dont know, i think actual reporting income is very important to lenders even if one has lots of assets.

Re: How to get a very high credit on low income but high net worth

K-in-Boston — Wed, 04 Dec 2019 22:42:28 GMT

Sorry by holdings I meant more general than simply checking/savings/money market. If your portfolio is with Schwab, Goldman Sachs, Merrill Lynch/Edge, etc. you may be able to get a favorable relationship with American Express or Bank of America is where I was going with that.

I don’t recall Capital One ever asking for assets. If cash back is most important to you, you may not find better than 4%. If they’re coding as entertainment purchases, Citi Premier has a 2x category for that which would be 2.5% back toward travel or possibly much more than what you are getting when transferring to a travel partner for business class travel.

As far as paying off the mortgage, it’ll lower your DTI which it doesn’t sound like is really an issue. For credit card lending, when a lender asks for assets they want fair liquidity not real estate. Not having any open loans at all can actually hurt your credit scores, while having a substantially paid down one helps quite a bit.

Re: How to get a very high credit on low income but high net worth

K-in-Boston — Wed, 04 Dec 2019 22:45:29 GMT

@AverageJoesCredit wrote:
I dont know, i think actual reporting income is very important to lenders even if one has lots of assets.

It really depends on the lender. If someone has a reported income of $20,000 a year but has $20 MM in assets, there are certain lenders that will of course understand this, and set limits accordingly. On the other hand there will be those who aren't equipped to handle a fairly uncommon situation like this and will just give somebody say a $5,000 limit because of their low income.

Re: How to get a very high credit on low income but high net worth

AverageJoesCredit — Thu, 05 Dec 2019 00:45:05 GMT

Ok K, ill take 20million please

Re: How to get a very high credit on low income but high net worth

Anonymous — Thu, 05 Dec 2019 00:54:22 GMT

Amex BBP gives 2x on up to 50k spending per year. They are also generous in limit and clis. That is close to 4% as I can think of, all without AF. Apply and talk to them may get you somewhere.

Re: How to get a very high credit on low income but high net worth

Anonymous — Thu, 05 Dec 2019 01:16:03 GMT

If you are open to business cards, most business cards will give you a better credit limit.

I think K-in-Boston said it best. Whoever you have your investments with is probably gonna give you a card knowing that. If you are a Platinum Preferred member with BOA and Merrill, they wouldn’t hesitate. Same with Schwab for the Plat.

Have you thought of maybe applying for another Savor Card? I don’t know data points on this one but I’m sure if you spend handsomely with Cap1, even though they have internal limits on your single card, doesn’t necessarily mean the same for another Savor. But I would see if anyone else chimes in on this.

Re: How to get a very high credit on low income but high net worth

Anonymous — Thu, 05 Dec 2019 05:39:19 GMT

Since CL is dependant upon a person's profile, it's tough to get very high without experience. That said, after few years of high usage you'd think Cap1 would have adjusted your limit to accomodate the spend.

I also wouldn't call less that $100K low income by any means, several people with lower than that have rather high CL's on CC's.

Considering this isn't actually a revenue stream, just people paying you back. It technically can't be counted on as guaranteed.

I'm thinking that maybe a LOC might suit your needs better, as opposed to trying to get a CC with $50+K CL.

You may have to switch from using Cap1and go for a Charge Card, or split the spend between two cards.

Re: How to get a very high credit on low income but high net worth

randomguy1 — Thu, 05 Dec 2019 06:15:48 GMT

HSBC Premier states 75,000 in total deposits or investments. They have a couple Premier credit cards just for Premier clients (and Jade which is higher).

Re: How to get a very high credit on low income but high net worth

Anonymous — Thu, 05 Dec 2019 06:49:58 GMT

Hi everyone,

Thank you for the thoughtful responses. Most of my funds are in Interactive Brokers, and my smaller Roth IRA in E-trade. It seems that Interactive Brokers doesn’t offer a credit card, but they do not a debit card that allows you to use your portfolio as collaterall. So I’d never considered this before, but I could certainly get this as a backup in case I can’t get my CL high enough.

Btw, does anyone know what the max capital one credit limit is? I’m currently at 30k, and trying to get an increase, but I’m looking online, and the highest CL I can find for anyone with this CC is only $30k. I didn’t even realize Individual CCs could have a max CL...

Re: How to get a very high credit on low income but high net worth

FinStar — Thu, 05 Dec 2019 06:59:56 GMT

@Anonymous wrote:
Hi everyone,

Thank you for the thoughtful responses. Most of my funds are in Interactive Brokers, and my smaller Roth IRA in E-trade. It seems that Interactive Brokers doesn’t offer a credit card, but they do not a debit card that allows you to use your portfolio as collaterall. So I’d never considered this before, but I could certainly get this as a backup in case I can’t get my CL high enough.

Btw, does anyone know what the max capital one credit limit is? I’m currently at 30k, and trying to get an increase, but I’m looking online, and the highest CL I can find for anyone with this CC is only $30k. I didn’t even realize Individual CCs could have a max CL...

I've seen CLs in the ~$300K range, but they are not as common. Mine is >$150K on a single card. The issue with Capital One, at least for the last few years, automated algorithms and/or AI typically determine a CLI if the account is eligible (very heavy usage seems to do the trick sometimes) - no option to speak to UW for manual review. That said, there's folks on here with Capital One CLs >$50K (personal or biz) which was largely possible back in the day when Capital One allowed the account combination feature. Then, there was a time period when CLDs occurred for a variety of folks.

Re: How to get a very high credit on low income but high net worth

NRB525 — Thu, 05 Dec 2019 11:14:09 GMT

@Anonymous wrote:
Hi everyone,

Thank you for the thoughtful responses. Most of my funds are in Interactive Brokers, and my smaller Roth IRA in E-trade. It seems that Interactive Brokers doesn’t offer a credit card, but they do not a debit card that allows you to use your portfolio as collaterall. So I’d never considered this before, but I could certainly get this as a backup in case I can’t get my CL high enough.

Btw, does anyone know what the max capital one credit limit is? I’m currently at 30k, and trying to get an increase, but I’m looking online, and the highest CL I can find for anyone with this CC is only $30k. I didn’t even realize Individual CCs could have a max CL...

You have a World Elite MC Savor, correct?

Can you just charge over the limit, since you will be paying it back within that statement print / payment due date cycle? The purchases tend to be once per year?

Re: How to get a very high credit on low income but high net worth

Anonymous — Thu, 05 Dec 2019 15:53:37 GMT

Yup, that’s exactly what I was told that the process is 100% automated now by machine. This logically makes sense for all businesses to make their decisions based on algorithms, but it also means there may be a lot less flexibility.

Capital One said that I can’t spend more than my credit limit in a single transaction. I’ll also talk to my broker about splitting up the transactions.

Thanks for all the advice.

Re: How to get a very high credit on low income but high net worth

Creditsen — Thu, 05 Dec 2019 16:08:58 GMT

@Anonymous wrote:
Hi everyone,

I’m currently at 30k, and trying to get an increase, but I’m looking online, and the highest CL I can find for anyone with this CC is only $30k. I didn’t even realize Individual CCs could have a max CL...

My savor one card is also at 30k. The only thing I can add is that Discover credit line increase requests asks about current assets that are available and not in retirement funds.

Re: How to get a very high credit on low income but high net worth

Anonymous — Thu, 05 Dec 2019 16:24:22 GMT

At this point, you're technically running a business and the reimbursements are your gross income. Get a business card and report your reimbursements + your annual income as your total annual income.

Re: How to get a very high credit on low income but high net worth

NRB525 — Fri, 06 Dec 2019 00:32:19 GMT

@Anonymous wrote:
Yup, that’s exactly what I was told that the process is 100% automated now by machine. This logically makes sense for all businesses to make their decisions based on algorithms, but it also means there may be a lot less flexibility.

Capital One said that I can’t spend more than my credit limit in a single transaction. I’ll also talk to my broker about splitting up the transactions.

Thanks for all the advice.

Interesting.
So the next strategy with CapOne is to see whether the tickets can be purchased in two transactions. Charge one, it posts, pay it, then charge the next transaction a few days later. I like the 4% on my Savor.