topic Re: Credit card limits.. in Credit Cards

Credit card limits..

Carloscda40 — Fri, 07 May 2021 23:49:16 GMT

Maybe I'm missing something but how is it that some have say 6 or so credit cards with like 5k limits or more?

Vs say 2 or 3 with like 10k limits?

But then it's frowned upon when a person have multiple cards with only 1k limits?

Thoughts..

Re: Credit card limits..

Anonymous — Fri, 07 May 2021 23:37:18 GMT

If I'm following you...

I wouldn't say it's "frowned upon" to have multiple $1k limit cards. I think it's more of a question of if collecting $1k limit cards actually makes those cards useful for everyday purposes. A $5k or $10k, or $40k card will make spending easier without multiple payments per cycle, will reduce the need to pay before statement cut to keep utilization in check, etc.

But, maybe I'm not following you....

Re: Credit card limits..

Carloscda40 — Fri, 07 May 2021 23:50:37 GMT

Ok I see what you're saying...

Re: Credit card limits..

pizza1 — Fri, 07 May 2021 23:52:15 GMT

@Carloscda40 wrote:
Maybe I'm missing something but how is it that some have say 6 or so credit cards with like 5k limits or more?
Vs say 2 or 3 with like 10k limits?

But then it's frawned upon when a person have multiple cards with only 1k limits?

Thoughts..

Are you asking how those people with several high limit cards, how they got them?? Im sorry, Im a little confused as well on what you're actually asking/referring too.

Im assumming you are referring to yourself as the one who has several $1k limit cards? It's not frowned upon. A lot of folks here don't understand how the rebuilding process works because they never went through it, and don't understand when rebuilders/new to credit have several low limit cards. Sometimes you have to have several $1k CC's in order to reach those goals of higher limit cards later down the road.

Re: Credit card limits..

Carloscda40 — Sat, 08 May 2021 00:07:02 GMT

Yes I was asking about those who have a number of cards with high limits. On here I've seen people who list like 10 crads each having high limits. How are they even able to do that with scores in the 700's, is it even nessary?

And I see your point about those with mulitiple 500-1k cards.

Apoloigies for the goofy question I'm new to the rebuild phase, just trying to understand more.

Re: Credit card limits..

pizza1 — Sat, 08 May 2021 00:28:22 GMT

@Carloscda40 wrote:
Yes I was asking about those who have a number of cards with high limits. On here I've seen people who list like 10 crads each having high limits. How are they even able to do that with scores in the 700's, is it even nessary? Well, necessary is a relative term, and too some people, yes, its necessary, lol. Its very easy and obtainable to get higher limit cards with scores in the 700's. It also depends a lot of the persons overall credit profile. If a person has a higher limit card, and applies for another card, chances are the SL on the new card will be the same or higher too in certain circumstances. Also, some of those folks with high limit cards obtained those limits over time with CLI's.

And I see your point about those with mulitiple 500-1k cards.

Apoloigies for the goofy question I'm new to the rebuild phase, just trying to understand more. No apologies needed! A lot of us , including me were in the same boat you're now at one point. If you want help increasing your limits on your current cards, and rebuilding, we're glad to help you so you can obtain those higher limits too!

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 00:31:32 GMT

I am guilty of having multiple +10k cards. Do I need all that credit? Nope! Does it come in handy when I have a large purchase? Yes, yes it does. The rewards and minor hit on ultilization are fantastic.

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 00:52:17 GMT

The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here.

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 00:54:12 GMT

Also keep in mind that no one here CL-shames others. For many here, $1000 cards are a pain to manage with their spend. There are members spending $50,000 per month and those cards are a nonstarter for them. Others have very low spending and a couple $1000 cards are enough. Everyone's needs are different.

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 02:00:14 GMT

@Anonymous wrote:
The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here.

@Anonymous not a lot of people talk about average CL. I do believe it can influence future CLs.

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 02:03:25 GMT

@Anonymous wrote:
@Anonymous wrote:
The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here.
@Anonymous not a lot of people talk about average CL. I do believe it can influence future CLs.

Oh I am a believer of that too which is why I'm dropping most of my low limit cards ahead of my Chase app in November.

Re: Credit card limits..

designated_knitter — Sat, 08 May 2021 02:18:47 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here.
@Anonymous not a lot of people talk about average CL. I do believe it can influence future CLs.
Oh I am a believer of that too which is why I'm dropping most of my low limit cards ahead of my Chase app in November.

I realize I'm a sample size of 1 but I didn't start getting limits greater than 2k until Navy saw fit to bestow a 6900 SL on me. Then NCSECU followed suit with a 5k limit. My Sony visa had been stuck at 2000 since the Cap1 days and now it is up to 4900.

I think most of us would prefer to have 3 5k cards rather than 15 1k card. But until you can find someone willing to take a chance on you for that sort of limit, you tend to get stuck in toy-limit heck!

I know many people complain about Navy's "Covid 4K" CLIs. it is all relative. I look at getting a 4K CLI like winning the lottery when I still can't get Citibank to graduate and USBank limits are stuck at their secured levels of 300 and 500 respectively.

I think it boils down to how much of a "buffer" do you need if you need to replace a major appliance or your car craps out. We probably all would like a 10-15k buffer. Whether we can get that on 1 card at 15k or 7.5 cards at 2k... well, you do what you've got to do while you climb the ladder.

Re: Credit card limits..

Horseshoez — Sat, 08 May 2021 02:36:42 GMT

I'm in the fewer cards with medium sized limits camp as well. Last year after my discharge I got a CapOne secured card with a $1,000 limit, and that proved unworkable for me as I typically charge anywhere between two and four grand per month, sometimes higher. I closed the card after only six weeks and opened a secured card with my new bank with a $5,000 limit; ahhh, much better, room to breathe. Since then that card has graduated to unsecured and I've obtained two additional unsecured cards giving me a total of 3 cards and a total limit of $14,300.

Regarding high limits, unless and until I start traveling on a regular basis on my own dime (i.e. without the benefit of a Corporate Credit Card), I doubt I'll ever come even close to hitting my limit, so I could honestly care less about adding cards and getting CLIs. But of course, there is always a "but" in this type of story. In my case, I do fly on Delta a lot, and while I typically fly enough per year to maintain my medallion status, having a Delta Sky Miles card might come in handy to help push me over the line to the next tier if I'm near one by the end of a calendar year. Do I have a Sky Miles card? No. Why? I burned AMEX in my Chapter 13 for some pretty big money, so they've summarily denied any attempts to give me a Sky Miles card, even with a "toy limit". I might make the effort once per year for a while, just for kicks and giggles.

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 03:41:30 GMT

It's not all about FICO scores. Income and debt matter. Two folks with identical FICO scores get approved for the same card, but the issuer calculates that one applicant's DTI could hit the underwriting limit with $3,000 in charges, and the other applicant is $35000 in charges away from hitting the DTI limit . . . those two cards are going to have different credit limits.

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 03:20:22 GMT

Well I hate to say it, but somebody has to: apping for too many cards too quickly or apping regularly and racking up too many new accounts or inquiries can also lead to lower starting CLs for many profiles.

Of course the debate on what "too many" or "too quickly" is rages, but I definitely believe a little patience can assist.

Re: Credit card limits..

designated_knitter — Sat, 08 May 2021 03:43:19 GMT

@Anonymous wrote:
Well I hate to say it, but somebody has to: apping for too many cards too quickly or apping regularly and racking up too many new accounts or inquiries can also lead to lower starting CLs for many profiles.

Of course the debate on what "too many" or "too quickly" is rages, but I definitely believe a little patience can assist.

This is true... however, while patience is a virtue... it is also often a luxury which many may not be able to afford... if you're a single parent with zero savings and you need to pay some bills after an unexpected expense, you may go into full on aggressive credit seeking mode and take whatever the sub-primes offer because even a 300 dollar CL will keep the lights on for another month.

Sadly and humbly, I've been there and lived to tell the tale!

Re: Credit card limits..

Anonymous — Sat, 08 May 2021 03:58:57 GMT

@Anonymous wrote:
@Anonymous wrote:
The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here.
@Anonymous not a lot of people talk about average CL. I do believe it can influence future CLs.

I wish I could share some of the UW info from my bank, I was frothing at the mouth once I found it (:

I know at least the biggest SL can help determine SLs for us, though I haven't seen anything about average CL (not that I've read our CL docs too much recently). But I'd certainly think so too, so much as other things could also segment a applicant into a lower limit/higher risk band

Re: Credit card limits..

babygirl1256 — Sat, 08 May 2021 05:06:54 GMT

@Carloscda40 I am new to posting and looking to broaden my knowledge on CLIs. I have been thinking about closing my Chase Slate which has a $300.00 SL (since 2011) and never automatically increased but Chase was willing to review based on a HP and I declined. I have kept that trade line open only because of the account age and after reading on this forum, I'm trying to decide whether to close it. I never charge over $15.00 monthly and always pay it off as I just use it and keep current activity. Does anyone believe my Chase trade line will keep me from receiving future high CLs or CLIs? Just wondering and any comments are welcomed. Thanks so much.

Credit Card/Name	Limit
American Express Blue Cash Preferred 3/2021 (New)	$5,000.00
Chase Slate Visa 3/2011 ~ 11 yrs	$300.00
DSNB/Macy's 3/2011 ~ 11 years	$12,000.00
Discover 1/2019 ~ 2 years	$5,600.00
NFCU Mastercard 4/2021 (New)	$23,100.00
USAA “Secured” American Express 9/2017 ~ 3½ years	$1,000.00

Re: Credit card limits..

Guyatthebeach — Sat, 08 May 2021 05:05:47 GMT

@Carloscda40 wrote:
Maybe I'm missing something but how is it that some have say 6 or so credit cards with like 5k limits or more?
Vs say 2 or 3 with like 10k limits?

But then it's frowned upon when a person have multiple cards with only 1k limits?

Thoughts..

As someone that started rebuilding my credit after a bankruptcy, I had a couple of credit cards with low limits, like 1 with $500 and a couple that were $1000. As a matter of fact, my Barnes&Nobles MC still has a $500 limit. In my opinion, if you use them wisely, your FICO scores will go up and you're still building a solid payment history. When I was focusing on my balances, I would pay 2 or 3 cards to zero on payment due. I would pay the others down to 10% on the due date and paid the balance off on the day after the statement cycled. It worked for me.

I actually understand both sides of the argument, and both sides have valid points. The goal in the end is show solid credit usage, excellent payment history, and consistent FICO score growth. How you get there is up to you.

Guyatthebeach

Re: Credit card limits..

babygirl1256 — Sat, 08 May 2021 05:09:29 GMT

@Guyatthebeach Great information to consider . . . thanks for posting.