topic Re: [Question] Is it worth having a 50k Credit Limit in Credit Cards

[Question] Is it worth having a 50k Credit Limit

TheFIGuy — Fri, 11 Feb 2022 18:45:32 GMT

Hey myFICO Familia,

Do you believe it's worth having a 50k credit limit on a card(s)?

I ask because I'm almost at my NFCU 80k aggregate limit across all accounts.

NFCU - 0001 is at a $41k credit limit
NFCU - 0002 is at a $37k credit limit

I know NFCU doesn't allow credit limit reallocation anymore (maybe they will in the future), and I'm thinking of two options:

Lower NFCU - 0002 limit by $7k and then submit an $8k credit limit increase for NFCU - 0001 to bring it to $49k. I will then wait for the 6/months to put the extra $1k request in for an aggregate $30k + $50k = $80k credit limit across my two accounts.
Lower NFCU - 0001 limit by $1k and then submit a $3k credit limit increase for NFCU - 0002 to bring it to $40k. I will then keep both NFCU - 0001 and 0002 at $40k each for a total of $80k credit limit across my two accounts.

I have a couple of 25k credit limits, but I do not have anything in the $50k range. I'm not sure if it matters much, so I wanted to get the general vibe here. I'm looking for long-term benefits. Would this help get higher approvals in the future having a $50k credit limit, or does that not matter to UW/Banking systems as a whole?

Re: [Question] Is it worth having a 50k Credit Limit

CYBERSAM — Fri, 11 Feb 2022 18:59:16 GMT

It'll be cool to have a 50K CC. Sure why not! 50K and 30K nice round limits 😎🤑

Re: [Question] Is it worth having a 50k Credit Limit

K-in-Boston — Fri, 11 Feb 2022 19:52:56 GMT

It's worth it if you need the limit for spending, availability for balance transfers, utilization, etc. If you are only buying the oft-mentioned pack of gum every 6 months, one $50k vs five $10k cards doesn't matter when it comes to utilization padding (and having 5 empty $10k cards may be better for some scoring metrics than one empty $50k card). If one is trying to manipulate mortgage scores by having higher util on a card with an extremely large limit that might be discarded from scoring metrics, the threshold appears to be higher than $50k.

There are some lenders who like to see a history with larger credit lines before approving cards that require larger limits, but $50k vs say $15k isn't likely to matter there.

I have some cards with pretty significant credit lines, but for the one $40k BECU approval a few years back I've had around 20 cards approved in the $5-15k range over the past 6 years. One is certainly more likely to be approved for higher limits if they have existing higher lines, just as they would be less likely to be approved for a large credit line if they only had a ton of $100-$500 store and rebuilding cards. Correlation doesn't necessarily equal causation, though, and in the previous examples it's likely more about what the profile (credit history and income) supports rather than limit-matching. I have around 20 accounts on my reports with limits between $20k-100k, yet off the top of my head I can only think of 5 approvals I have had of $20k or more.

Re: [Question] Is it worth having a 50k Credit Limit

dragontears — Fri, 11 Feb 2022 19:44:52 GMT

@TheFIGuy wrote:
Hey myFICO Familia,

Do you believe it's worth having a 50k credit limit on a card(s)?

I ask because I'm almost at my NFCU 80k aggregate limit across all accounts.
NFCU - 0001 is at a $41k credit limit
NFCU - 0002 is at a $37k credit limit
I know NFCU doesn't allow credit limit reallocation anymore (maybe they will in the future), and I'm thinking of two options:
Lower NFCU - 0002 limit by $7k and then submit an $8k credit limit increase for NFCU - 0001 to bring it to $49k. I will then wait for the 6/months to put the extra $1k request in for an aggregate $30k + $50k = $80k credit limit across my two accounts.
Lower NFCU - 0001 limit by $1k and then submit a $3k credit limit increase for NFCU - 0002 to bring it to $40k. I will then keep both NFCU - 0001 and 0002 at $40k each for a total of $80k credit limit across my two accounts.
I have a couple of 25k credit limits, but I do not have anything in the $50k range. I'm not sure if it matters much, so I wanted to get the general vibe here. I'm looking for long-term benefits. Would this help get higher approvals in the future having a $50k credit limit, or does that not matter to UW/Banking systems as a whole?

Can you define what you mean by "worth"?

Is it worth it to me to get a card at or above 50k? Nope, my spend is not high enough to need a CL that high in order for utilization to be kept reasonable.

Would it be worth it for you? No idea, you didn't mention anything about how much you spend in a month.

Re: [Question] Is it worth having a 50k Credit Limit

Remedios — Fri, 11 Feb 2022 20:26:25 GMT

I don't know much about NFCU (other than that there is a cult following) and I don't believe they are too sensitive when it comes to lack of use, which would be my concern when we decide we want cards with monster limits.

What's the point in growing a card to $30K from $10K only to have it CLDed to $5K over non use.

So while it may not bother NFCU, I think everyone should consider if their use justifies limits and if chasing limits is worth getting them slashed over a pack of gum every three months.

Re: [Question] Is it worth having a 50k Credit Limit

tacpoly — Fri, 11 Feb 2022 21:39:14 GMT

Is it worth it to have a credit card with a $50K limit vs one with a $41K limit? Only if you need to charge more than $41K or you have OCD that you need round numbers limits.

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Fri, 11 Feb 2022 21:44:23 GMT

@CYBERSAM wrote:
It'll be cool to have a 50K CC. Sure why not! 50K and 30K nice round limits 😎🤑

Lol, thanks for the comment!

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Fri, 11 Feb 2022 21:45:49 GMT

@K-in-Boston wrote:
It's worth it if you need the limit for spending, availability for balance transfers, utilization, etc. If you are only buying the oft-mentioned pack of gum every 6 months, one $50k vs five $10k cards doesn't matter when it comes to utilization padding (and having 5 empty $10k cards may be better for some scoring metrics than one empty $50k card). If one is trying to manipulate mortgage scores by having higher util on a card with an extremely large limit that might be discarded from scoring metrics, the threshold appears to be higher than $50k.

There are some lenders who like to see a history with larger credit lines before approving cards that require larger limits, but $50k vs say $15k isn't likely to matter there.

I have some cards with pretty significant credit lines, but for the one $40k BECU approval a few years back I've had around 20 cards approved in the $5-15k range over the past 6 years. One is certainly more likely to be approved for higher limits if they have existing higher lines, just as they would be less likely to be approved for a large credit line if they only had a ton of $100-$500 store and rebuilding cards. Correlation doesn't necessarily equal causation, though, and in the previous examples it's likely more about what the profile (credit history and income) supports rather than limit-matching. I have around 20 accounts on my reports with limits between $20k-100k, yet off the top of my head I can only think of 5 approvals I have had of $20k or more.

Much appreciated this helps! I think I will do two $40k limits and if NFCU does limit reallocation In the future determine if I'll go $50k and $30k reallocation.

Re: [Question] Is it worth having a 50k Credit Limit

SouthJamaica — Fri, 11 Feb 2022 21:47:00 GMT

@TheFIGuy wrote:
Hey myFICO Familia,

Do you believe it's worth having a 50k credit limit on a card(s)?

I ask because I'm almost at my NFCU 80k aggregate limit across all accounts.
NFCU - 0001 is at a $41k credit limit
NFCU - 0002 is at a $37k credit limit
I know NFCU doesn't allow credit limit reallocation anymore (maybe they will in the future), and I'm thinking of two options:
Lower NFCU - 0002 limit by $7k and then submit an $8k credit limit increase for NFCU - 0001 to bring it to $49k. I will then wait for the 6/months to put the extra $1k request in for an aggregate $30k + $50k = $80k credit limit across my two accounts.
Lower NFCU - 0001 limit by $1k and then submit a $3k credit limit increase for NFCU - 0002 to bring it to $40k. I will then keep both NFCU - 0001 and 0002 at $40k each for a total of $80k credit limit across my two accounts.
I have a couple of 25k credit limits, but I do not have anything in the $50k range. I'm not sure if it matters much, so I wanted to get the general vibe here. I'm looking for long-term benefits. Would this help get higher approvals in the future having a $50k credit limit, or does that not matter to UW/Banking systems as a whole?

No it's not worth it. Unless of course you have a card where you customarily use it for $50k monthly spending

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Fri, 11 Feb 2022 21:47:38 GMT

@dragontears wrote:
@TheFIGuy wrote:
Hey myFICO Familia,

Do you believe it's worth having a 50k credit limit on a card(s)?

I ask because I'm almost at my NFCU 80k aggregate limit across all accounts.
NFCU - 0001 is at a $41k credit limit
NFCU - 0002 is at a $37k credit limit
I know NFCU doesn't allow credit limit reallocation anymore (maybe they will in the future), and I'm thinking of two options:
Lower NFCU - 0002 limit by $7k and then submit an $8k credit limit increase for NFCU - 0001 to bring it to $49k. I will then wait for the 6/months to put the extra $1k request in for an aggregate $30k + $50k = $80k credit limit across my two accounts.
Lower NFCU - 0001 limit by $1k and then submit a $3k credit limit increase for NFCU - 0002 to bring it to $40k. I will then keep both NFCU - 0001 and 0002 at $40k each for a total of $80k credit limit across my two accounts.
I have a couple of 25k credit limits, but I do not have anything in the $50k range. I'm not sure if it matters much, so I wanted to get the general vibe here. I'm looking for long-term benefits. Would this help get higher approvals in the future having a $50k credit limit, or does that not matter to UW/Banking systems as a whole?
Can you define what you mean by "worth"?

Is it worth it to me to get a card at or above 50k? Nope, my spend is not high enough to need a CL that high in order for utilization to be kept reasonable.

Would it be worth it for you? No idea, you didn't mention anything about how much you spend in a month.

My heavy hitter cards are AMEX Plat, Gold, BBP, and RBFCU 2% cashback when AMEX isn't accepted. As @K-in-Boston said, these cards are my "pack of gum" once a month utilization padding cards as of current. I keep reoccurring subscriptions on them, so they stay active and open.

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Fri, 11 Feb 2022 21:48:12 GMT

@Remedios wrote:
I don't know much about NFCU (other than that there is a cult following) and I don't believe they are too sensitive when it comes to lack of use, which would be my concern when we decide we want cards with monster limits.

What's the point in growing a card to $30K from $10K only to have it CLDed to $5K over non use.

So while it may not bother NFCU, I think everyone should consider if their use justifies limits and if chasing limits is worth getting them slashed over a pack of gum every three months.

Good-points!!

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Fri, 11 Feb 2022 21:49:10 GMT

@SouthJamaica wrote:
@TheFIGuy wrote:
Hey myFICO Familia,

Do you believe it's worth having a 50k credit limit on a card(s)?

I ask because I'm almost at my NFCU 80k aggregate limit across all accounts.
NFCU - 0001 is at a $41k credit limit
NFCU - 0002 is at a $37k credit limit
I know NFCU doesn't allow credit limit reallocation anymore (maybe they will in the future), and I'm thinking of two options:
Lower NFCU - 0002 limit by $7k and then submit an $8k credit limit increase for NFCU - 0001 to bring it to $49k. I will then wait for the 6/months to put the extra $1k request in for an aggregate $30k + $50k = $80k credit limit across my two accounts.
Lower NFCU - 0001 limit by $1k and then submit a $3k credit limit increase for NFCU - 0002 to bring it to $40k. I will then keep both NFCU - 0001 and 0002 at $40k each for a total of $80k credit limit across my two accounts.
I have a couple of 25k credit limits, but I do not have anything in the $50k range. I'm not sure if it matters much, so I wanted to get the general vibe here. I'm looking for long-term benefits. Would this help get higher approvals in the future having a $50k credit limit, or does that not matter to UW/Banking systems as a whole?
No it's not worth it. Unless of course you have a card where you customarily use it for $50k monthly spending

Thanks for the reassurance!

Re: [Question] Is it worth having a 50k Credit Limit

wasCB14 — Fri, 11 Feb 2022 21:53:41 GMT

@TheFIGuy wrote:
@SouthJamaica wrote:
@TheFIGuy wrote:
Hey myFICO Familia,

Do you believe it's worth having a 50k credit limit on a card(s)?

I ask because I'm almost at my NFCU 80k aggregate limit across all accounts.
NFCU - 0001 is at a $41k credit limit
NFCU - 0002 is at a $37k credit limit
I know NFCU doesn't allow credit limit reallocation anymore (maybe they will in the future), and I'm thinking of two options:
Lower NFCU - 0002 limit by $7k and then submit an $8k credit limit increase for NFCU - 0001 to bring it to $49k. I will then wait for the 6/months to put the extra $1k request in for an aggregate $30k + $50k = $80k credit limit across my two accounts.
Lower NFCU - 0001 limit by $1k and then submit a $3k credit limit increase for NFCU - 0002 to bring it to $40k. I will then keep both NFCU - 0001 and 0002 at $40k each for a total of $80k credit limit across my two accounts.
I have a couple of 25k credit limits, but I do not have anything in the $50k range. I'm not sure if it matters much, so I wanted to get the general vibe here. I'm looking for long-term benefits. Would this help get higher approvals in the future having a $50k credit limit, or does that not matter to UW/Banking systems as a whole?
No it's not worth it. Unless of course you have a card where you customarily use it for $50k monthly spending
Thanks for the reassurance!

Just because a person doesn't spend $50k on a card customarily doesn't mean they won't occasionally or potentially make a large transaction.

Though OP knows the chance of a big transaction better than I do.

Re: [Question] Is it worth having a 50k Credit Limit

Anonymous — Fri, 11 Feb 2022 22:58:20 GMT

@wasCB14 wrote:
Just because a person doesn't spend $50k on a card customarily doesn't mean they won't occasionally or potentially make a large transaction.

Though OP knows the chance of a big transaction better than I do.

Right, but the same logic argues that you should always go for higher and higher limits because of the potential. Almost as if cards should always "grow" or something. Wait, what's that place where they are always talking about that....

Re: [Question] Is it worth having a 50k Credit Limit

wasCB14 — Sat, 12 Feb 2022 00:24:11 GMT

@Anonymous wrote:
@wasCB14 wrote:
Just because a person doesn't spend $50k on a card customarily doesn't mean they won't occasionally or potentially make a large transaction.

Though OP knows the chance of a big transaction better than I do.
Right, but the same logic argues that you should always go for higher and higher limits because of the potential. Almost as if cards should always "grow" or something. Wait, what's that place where they are always talking about that....

It depends on your situation. A homeowner can have generally modest spend and still be hit with an occasional large repair/renovation bill that can be paid by CC.

My attitude is that any large transaction will only happen on one of a few cards (Bus. or Schwab Plat, CFU, BBP, BofA PR, or Costco). I care about CLs on those cards. But a $50k Discover, Freedom, or Arrival would be useless to me.

Re: [Question] Is it worth having a 50k Credit Limit

AverageJoesCredit — Sat, 12 Feb 2022 01:33:31 GMT

I cant vouch for a 50k cc since im too poor to ever achieve that but i can correlate a little in why having a high limit can be important. Navy has a cult following the same way Chase or US Bank have for their own reasons. In my case i have gotten my Navy cc to 33k which in comparison to my income is essentially like a 50k cc lol. That 33k cc literally saved my fathers life im 100% sure of this as it allowed me to help him with a serious financial issue. Besides that amazing feat, right as this was happening , Penfed decided that i was worth a 20k credit limit, jumping up from a 4.1k limit to 20k in my first cli attemt after having the card a year.

I feel that by having bigger limits with Navy may have been enough to show Penfed iwas responsble with high limit cards and they responded accordingly. No hard evidence but this coming from my previous 5 years experience with Penfed where i had to fight to get just 1k increase on my $500 cc.

Just my humble opinion that sometimes having or getting bigger credit limits can be very important not only for spending huge but it might help with other lenders and very importantly can give you more options if you might need to carry some debt , utilization, or for bt purposes. Just a lowballer experience

Re: [Question] Is it worth having a 50k Credit Limit

Aim_High — Sat, 12 Feb 2022 04:11:50 GMT

I considered something of that same choice of splits, @TheFIGuy, when I was considering multiple NFCU cards.

I am a believer in leveraging credit limits and that larger limits begat larger limits, to a degree. But I also agree with @K-in-Boston that any larger-limit approval still has to be relevant to that overall credit profile and income. And I also don't expect that having $50K+ limits means that I can expect such high limits to start on all my new cards. However, I do think it might encourage a lender to give a $35K SL instead of $25K, for example. If you don't have any cards at $50K, I can see value in having one at that limit. As @AverageJoesCredit pointed out, it would give you the flexibility to spend or balance transfer more to that card, and it does demonstrate that you can responsibly handle that limit. It (may) lead to other lenders offering healthier CLIs. Unless there's a reason you prefer 40/40 versus 50/30, I'd say "why not" go with the 50/30?

I have added credit limits for some individual and overall utilization padding, but I prefer to do that more by higher limits on fewer selected cards than by adding more cards. For that reason, I'd rather concentrate credit limits (and utilization padding) more on my most valued cards and then use them more heavily with a slimmer wallet. I'm not completely "there" yet, but it's the direction I'm headed.

Maybe I'll reach the point where lenders will close some of my unused limits but I've generally found that I don't have to use even 50% much less 100% or more of my credit limits every year to keep higher limits. As long as I have maintained a good-to-excellent FICO, stable credit profile, and show regular and responsible use of my cards, I've not had lenders slash my limits. (The only time I was balance-chased was when I got in over my head during a financial crisis, ran up higher utilization, and was slow to pay it down.) Yes, I know some lenders have been known to do that, but I also think it can be profile and situation specific. So I wouldn't be overly concerned about growing a limit only to have it slashed.

Re: [Question] Is it worth having a 50k Credit Limit

CH-7-Mission-Accomplished — Sat, 12 Feb 2022 05:31:08 GMT

@Aim_High wrote:
I considered something of that same choice of splits, @TheFIGuy, when I was considering multiple NFCU cards.

I am a believer in leveraging credit limits and that larger limits begat larger limits, to a degree. But I also agree with @K-in-Boston that any larger-limit approval still has to be relevant to that overall credit profile and income. And I also don't expect that having $50K+ limits means that I can expect such high limits to start on all my new cards. However, I do think it might encourage a lender to give a $35K SL instead of $25K, for example. If you don't have any cards at $50K, I can see value in having one at that limit. As @AverageJoesCredit pointed out, it would give you the flexibility to spend or balance transfer more to that card, and it does demonstrate that you can responsibly handle that limit. It (may) lead to other lenders offering healthier CLIs. Unless there's a reason you prefer 40/40 versus 50/30, I'd say "why not" go with the 50/30?

I have added credit limits for some individual and overall utilization padding, but I prefer to do that more by higher limits on fewer selected cards than by adding more cards. For that reason, I'd rather concentrate credit limits (and utilization padding) more on my most valued cards and then use them more heavily with a slimmer wallet. I'm not completely "there" yet, but it's the direction I'm headed.

Maybe I'll reach the point where lenders will close some of my unused limits but I've generally found that I don't have to use even 50% much less 100% or more of my credit limits every year to keep higher limits. As long as I have maintained a good-to-excellent FICO, stable credit profile, and show regular and responsible use of my cards, I've not had lenders slash my limits. (The only time I was balance-chased was when I got in over my head during a financial crisis, ran up higher utilization, and was slow to pay it down.) Yes, I know some lenders have been known to do that, but I also think it can be profile and situation specific. So I wouldn't be overly concerned about growing a limit only to have it slashed.

I currently have 350K in open credit limits and I've opened and closed an additional 250K in limits since my BK eight years ago. I do have a Navy card at $50K and a Cap 1 card at $50K (both of these limits were due to card combinations, which Cap 1 no longer allows and I hear Navy doesn't either.)

Here is the deal as I see it: You would be better off with five $10K cards from five different lenders than one $50K from anyone. The reason is that once a lender gets spooked by you, even if you did nothing wrong whatsoever, they shut you down completley. Think of the poor folks who opened $80K with Synchrony, only to log into their $35K Lowes account one day and find that their $35K limit card closed, and then discover all their other cards are closed. Or the same with Comenity.

I am not eligible for Chase or AMEX because I burned them each for $30K to $50K, but I constantly see people online who have like three or four cards from each of these two lenders -- and they have huge total limits -- but one returned payment (not even your fault because your bank messed up), and they will shut you you down -- every single one of your accounts -- and they won't reconsider. Can you imagine being on a trip abroad, let's say to Europe, and you have a Chase card and an AMEX card and you are on a really nice vacation and going to charge $10K, and you have the cash in the bank to pay the bill when you get home, and they shut you down over some algorithm fart? Now you have no credit with anyone.

I say five bank cards with five different lenders, and if you want to go for two or three cards per one lender, fine, but don't close the other four.

I know this is true. Don't put all your eggs in one basket, no matter how much you just love that basket.

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Sat, 12 Feb 2022 05:39:10 GMT

@Aim_High wrote:
I considered something of that same choice of splits, @TheFIGuy, when I was considering multiple NFCU cards.

I am a believer in leveraging credit limits and that larger limits begat larger limits, to a degree. But I also agree with @K-in-Boston that any larger-limit approval still has to be relevant to that overall credit profile and income. And I also don't expect that having $50K+ limits means that I can expect such high limits to start on all my new cards. However, I do think it might encourage a lender to give a $35K SL instead of $25K, for example. If you don't have any cards at $50K, I can see value in having one at that limit. As @AverageJoesCredit pointed out, it would give you the flexibility to spend or balance transfer more to that card, and it does demonstrate that you can responsibly handle that limit. It (may) lead to other lenders offering healthier CLIs. Unless there's a reason you prefer 40/40 versus 50/30, I'd say "why not" go with the 50/30?

I have added credit limits for some individual and overall utilization padding, but I prefer to do that more by higher limits on fewer selected cards than by adding more cards. For that reason, I'd rather concentrate credit limits (and utilization padding) more on my most valued cards and then use them more heavily with a slimmer wallet. I'm not completely "there" yet, but it's the direction I'm headed.

Maybe I'll reach the point where lenders will close some of my unused limits but I've generally found that I don't have to use even 50% much less 100% or more of my credit limits every year to keep higher limits. As long as I have maintained a good-to-excellent FICO, stable credit profile, and show regular and responsible use of my cards, I've not had lenders slash my limits. (The only time I was balance-chased was when I got in over my head during a financial crisis, ran up higher utilization, and was slow to pay it down.) Yes, I know some lenders have been known to do that, but I also think it can be profile and situation specific. So I wouldn't be overly concerned about growing a limit only to have it slashed.

I agree with everything you said, and now I'm back thinking 50/30 might be worth the ordeal. I'm hoping I can get my RBFCU 2% cashback card to a $50k Credit Limit one day as well! I'll be using that card for international travel mostly until I decide if I ever want to move ~100k in assets to Merrel Lynch for Preferred Rewards and apply for a BOA Premium Rewards card. I just really don't like BOA, but I digress!

Side Note: Are you still team #JMPC/chase?

Re: [Question] Is it worth having a 50k Credit Limit

TheFIGuy — Sat, 12 Feb 2022 05:46:19 GMT

@CH-7-Mission-Accomplished wrote:
Can you imagine being on a trip abroad, let's say to Europe, and you have a Chase card and an AMEX card and you are on a really nice vacation and going to charge $10K, and you have the cash in the bank to pay the bill when you get home, and they shut you down over some algorithm fart? Now you have no credit with anyone.

All great points!

We both know in the scenario it would be JMPC/Chase shutting down accounts on vacation in the middle of nowhere lol!