topic Re: How do I get a large credit line without high income? in Credit Cards

How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 00:35:21 GMT

here are my stats (760 across the board)

1,000 card 1

10,000 card 2

10,000 card 3

10,000 personal line or credit 1

10,000 personal line of credit 2

15,000 personal line of credit 3

2,000 overdraft line of credit

Zero utilization (hasn't reported my recent loan payoff)

Im looking to secure 50-100k more dollars in personal line of credit accounts but i want to have really high limit cards around 30-50k. How would I get around 3 cards ranging from 30-50 without high income?

Re: How do I get a large credit line without high income?

K-in-Boston — Sun, 13 Sep 2020 00:46:16 GMT

You would need to find banks willing to extend credit lines of a certain percentage of your income to those matching your credit profile. What would you consider a high income, though? That's subjective and definitely varies by locale. $250k wouldn't really be considered high income in some areas and even then $50k revolving lines can often be a stretch, or beyond what some lenders will extend to anyone regardless of income.

Assets in lieu of income can also play a role.

Re: How do I get a large credit line without high income?

Aim_High — Sun, 13 Sep 2020 01:07:39 GMT

Credit limits are a complicated topic, @Anonymous. There is no easy answer or quick fix to high credit limits. Not to mention that during the economic downturn of the coronavirus pandemic, it's not the best time to seek out high credit limits, especially those that would quickly double or triple your existing limits. It's unlikely to happen.

Yes, high income can be one factor in more quickly amassing high credit limits, but there are two other ways it sometimes happens. High level of spend-and-pay can help, such as someone who can charge high levels of business expenses and pay it off monthly. Another way would be to have high levels of assets invested with a lender so that you have a special relationship. For many people, none of the above applies.

That leaves the "old-fashioned way," which is basically time (and a lot of it) and long-term demonstrated financial responsibility. Most of us took decades, not just years, to see limits of $30K to $50K and above.

There are some lenders that are historically more generous with limits but they are the exception rather than the rule. And during the current economic climate, even they have downsized their approvals. One of these is Navy FCU.

I've written some lengthy threads about credit limits with my thoughts and observations that you might find helpful. Go to this first link and then follow the other links to other threads I wrote about the topic. Perhaps they will help.

https://ficoforums.myfico.com/t5/Credit-Cards/Do-travel-cards-usually-come-with-higher-limits/m-p/5752615#M1669150

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 00:55:54 GMT

In one of your previous posts you say you have a $40K income. If that hasn't multiplied a number of times, you will have a hard time achieving your goal. While a handful of banks and CUs are comfortable with close to or even over 100% exposure, they're rare and it seems much more likely for them to be willing to match or exceed lower incomes than higher ones (say $20K income getting $20K limits while a $40K income gets $20K as well despite the bank or CU offering $50K+ max limits to six figure incomes).

With the economy right now, I would actually think that it's going to be more common to see 30% of income in limits again.

If you are eligible for NFCU, they're one of those places known to be comfortable with higher limits but it takes time to get there.

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 00:54:26 GMT

A long-term history of on-time payments overall and heavy use of your cards that you've had a long time should help. Of course, heavy use may imply higher income, but there are a few here that have long histories with larger lines and lower income.

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 01:01:00 GMT

As mentioned here that's its harder to achieve in this economic environment, in the meantime until the environment improves, you can continue to use your cards and pay on time every time, and that will count when the day comes where lines are increased more liberally.

Re: How do I get a large credit line without high income?

Aim_High — Sun, 13 Sep 2020 01:12:20 GMT

@Anonymous wrote:

Credit Cards:
1,000 card 1
10,000 card 2
10,000 card 3
PLOCs:
10,000 personal line or credit 1
10,000 personal line of credit 2
15,000 personal line of credit 3
ODLOC:
2,000 overdraft line of credit
... i want to have really high limit cards around 30-50k

You would see this in my postings that I linked, but I should also mention that 30K to 50K limits are probably highly unlikely with the profile you present. Most lenders tend to approve limits in-line with what you've already shown you can handle successfully or within a small percentage above that. I'm not sure they would consider a PLOC limit in the same category as a credit card limit. Your average credit card limit is $7K. Regardless, whether they use your highest limit as 10K or 15K, you're nowhere close to the limits you seek. As an outlier, a lender might approve you for $20K, I would guess. Working up to $30K to $50K will take a lot more time and profile-building.

Re: How do I get a large credit line without high income?

M_Smart007 — Sun, 13 Sep 2020 03:05:04 GMT

"Most of us took decades, not just years, to see limits of $30K to $50K and above."

@Aim_High, So you are suggesting that I am old? (some days I really feel it)

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 03:07:31 GMT

Whats a good way to build my profile?

Re: How do I get a large credit line without high income?

Aim_High — Sun, 13 Sep 2020 03:24:25 GMT

@M_Smart007 wrote:
"Most of us took decades, not just years, to see limits of $30K to $50K and above."
@Aim_High, So you are suggesting that I am old? (some days I really feel it)

Well Sir, unfortunately I think we both are!

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 03:31:11 GMT

@Anonymous You said in another post you want to CA/draw on all your accounts to buy real estate...

Unless you're buying something that guarantees returns higher than the rather insane APRs on PLOCs, this may not be a sane decision

Re: How do I get a large credit line without high income?

Aim_High — Sun, 13 Sep 2020 17:18:18 GMT

@Anonymous wrote:
Whats a good way to build my profile?

Lots of suggestions and answers in the postings above and in my linked threads. Basically use your credit responsibly over time, slowly add new and better cards to your lineup, and be patient. It takes time.

What is your Average Age of Accounts? Age of Youngest Account? Age of Oldest Account? How much spending are you putting through your present cards and what is the utilization rate? What categories do you have the highest spending and what types of cards are you looking for? Travel? Rewards points? Cash Back? Low APR and balance transfer? Annual Fee or not? Perks? Where do you have banking accounts? Do you or family members have military affiliation? Have you burned any lenders with previous collections or derogatories? Without more background information in your postings or signature, it's difficult for us to answer your general questions.

*In most cases, High Credit Limits are not as much a credit goal as they are a BY-PRODUCT of building a healthy credit file.

All these things factor into what the community might recommend for your next steps, but without knowing more it's hard for us to help you. We're here to support you but you have to do some of your own research looking up old threads, reading, and asking specific questions.

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 03:56:54 GMT

@Anonymous Please do not take offense as I mean this in a genuine non-critical way, but why do you need high revolving limits?

Is it just a matter of floating expenses or are you looking to pad utilization?

Again, I am just asking out of curiosity.

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 12:30:52 GMT

Im looking to purchase real estate

Re: How do I get a large credit line without high income?

Anonymous — Sun, 13 Sep 2020 12:32:14 GMT

no baddies at all. No late payments credit history average 5 years. No family military affiliations. Im looking for large balances so I can pull money off the cards.

Re: How do I get a large credit line without high income?

sarge12 — Sun, 13 Sep 2020 12:55:04 GMT

@Anonymous wrote:
Im looking to purchase real estate

If looking for to purchase real estate, very high credit limits on revolving accounts is not advisable in my opinion. DTI is strongly considered in real estate loans. Three cards are needed to help maximize utilization, and high limits are achieved over time and may take in to account income, even though income will not harm scores. Some real estate lenders might see high revolving limits as impediments to possibly increased future debt. If going for credit cards, higher limits might be helpul. The amount the lender will allow in the real estate loan has more to do with DTI and appraisal of the property. The value of the realestate and the combine debt as a percentage of the property value and the DTI on the loan terms has a lot to do with it.

Re: How do I get a large credit line without high income?

Jnbmom — Sun, 13 Sep 2020 13:00:00 GMT

@Anonymous wrote:
Im looking to purchase real estate

This is not a very good idea for obviously reasons.

Re: How do I get a large credit line without high income?

rostrow416 — Sun, 13 Sep 2020 13:20:12 GMT

High limits are more income based than anything else. It really depends on what you consider high income vs your current income. While some with low income may be able to get 20-25k limits, getting crazy high 50k limits on cards is going to be really difficult without a good income and a thick credit profile.

Re: How do I get a large credit line without high income?

BmoreBull — Sun, 13 Sep 2020 13:45:18 GMT

@sarge12 wrote:
@Anonymous wrote:
Im looking to purchase real estate
If looking for to purchase real estate, very high credit limits on revolving accounts is not advisable in my opinion. DTI is strongly considered in real estate loans. Three cards are needed to help maximize utilization, and high limits are achieved over time and may take in to account income, even though income will not harm scores. Some real estate lenders might see high revolving limits as impediments to possibly increased future debt. If going for credit cards, higher limits might be helpul. The amount the lender will allow in the real estate loan has more to do with DTI and appraisal of the property. The value of the realestate and the combine debt as a percentage of the property value and the DTI on the loan terms has a lot to do with it.

There are a lot of YouTube videos, where they talk about purchasing and renovating real estate, by leveraging CC's and PLOC's. I think a lot of it revolves around the Velocity Banking technique. I believe that this may be what the OP is referring to when he states that he wants to use these lines of credit for real estate. While some people appear to have been successful using this technique, I don't think it's a risk worth taking for everyone. Especially if the income is not there to cover the expenses if something goes wrong. As someone who has "flipped" real estate in the past, I can tell you that things definitely go wrong. Your first property is usually going to be more of a learning tool than a profit.

Re: How do I get a large credit line without high income?

NRB525 — Sun, 13 Sep 2020 13:46:51 GMT

@Anonymous wrote:
no baddies at all. No late payments credit history average 5 years. No family military affiliations. Im looking for large balances so I can pull money off the cards.

It is good you have excellent payment history.

Using credit cards to get cash advances to buy real estate is simply not a good idea. The interest rates on the credit cards will drown you before you can get the real estate turned around / flipped / sold for profit.

Best to talk with a Credit Union, or a bank, and try to get financing secured by the real estate.