topic Re: Higher CL in Credit Cards

Higher CL

Anonymous — Tue, 07 Oct 2014 16:37:11 GMT

I have a higher credit score [a niche higher than 800], but when I apply to any new credit card I just get CL of 10k... I see a lot of them get more than 30k & higher as far as 50k. How are these people getting 50k? What factors matter for the banks to allow 50k limits? I am in my 30's and have had credit history for about 11 years now.

UPDATED: The major reason I am trying to get 1 higher limit card, so that I can just have this 1 card to use. My DTI has been closer to 10% & I intend to keep it that way. No BKRP's & No collections ever on my account.

Re: Higher CL

Anonymous — Tue, 07 Oct 2014 16:07:36 GMT

Many factors. Payment history, income, AAoA.

Re: Higher CL

FinStar — Tue, 07 Oct 2014 16:11:13 GMT

@Anonymous wrote:
Many factors. Payment history, income, AAoA.

+1 Exactly. Income is a definite criteria, plus depending on the lender, if there is a presence of other higher TLs on file (i.e. capacity).

Re: Higher CL

Anonymous — Tue, 07 Oct 2014 16:12:12 GMT

@FinStar wrote:
@Anonymous wrote:
Many factors. Payment history, income, AAoA.
+1 Exactly. Income is a definite criteria, plus depending on the lender, if there is a presence of other higher TLs on file (i.e. capacity).

Indeed. They aren't going to give you a 50k card when your income is 30k... in most cases anyways.

Re: Higher CL

Anonymous — Tue, 07 Oct 2014 16:13:30 GMT

@Anonymous wrote:
@FinStar wrote:
@Anonymous wrote:
Many factors. Payment history, income, AAoA.
+1 Exactly. Income is a definite criteria, plus depending on the lender, if there is a presence of other higher TLs on file (i.e. capacity).
Indeed. They aren't going to give you a 50k card when your income is 30k... in most cases anyways.

They will if you "accidentally" add a 0.

Re: Higher CL

DrZoidberg — Tue, 07 Oct 2014 16:13:36 GMT

Payment history and score help you get approved. The limit depends on income, DTI ratio, assets, current utilization and limits on other cards.

Re: Higher CL

lg8302ch — Tue, 07 Oct 2014 16:19:35 GMT

@DrZoidberg wrote:
Payment history and score help you get approved. The limit depends on income, DTI ratio, assets, current utilization and limits on other cards.

This makes sense and why would anybody with an income of 40K need cards with 40K limits??? That is only the beginning of troubles

Re: Higher CL

Anonymous — Tue, 07 Oct 2014 16:20:40 GMT

@lg8302ch wrote:
@DrZoidberg wrote:
Payment history and score help you get approved. The limit depends on income, DTI ratio, assets, current utilization and limits on other cards.
This makes sense and why would anybody with an income of 40K need cards with 40K limits??? That is only the beginning of troubles

Re: Higher CL

Anonymous — Tue, 07 Oct 2014 16:23:53 GMT

@lg8302ch wrote:
@DrZoidberg wrote:
Payment history and score help you get approved. The limit depends on income, DTI ratio, assets, current utilization and limits on other cards.
This makes sense and why would anybody with an income of 40K need cards with 40K limits??? That is only the beginning of troubles

Same really applies to all of us who have multiple credit cards where the total CL is a multiple of our income.

Re: Higher CL

Themanwhocan — Tue, 07 Oct 2014 17:40:32 GMT

@Anonymous wrote:
I have a higher credit score [a niche higher than 800], but when I apply to any new credit card I just get CL of 10k... I see a lot of them get more than 30k & higher as far as 50k. How are these people getting 50k? What factors matter for the banks to allow 50k limits? I am in my 30's and have had credit history for about 11 years now.

UPDATED: The major reason I am trying to get 1 higher limit card, so that I can just have this 1 card to use. My DTI has been closer to 10% & I intend to keep it that way. No BKRP's & No collections ever on my account.

Well, the easiest way to get 30K is to apply for a NASA FCU credit card (unless you have a business, then get ther business card for 50K). The tough part seems to be choosing what space related image to put on the credit card...

Another strategy is to get a card from a company known for giving high credit limits, such as American Express, and since Amex credit limit increase requests are soft pulls, you can basically request one every 6 months, or 3 months after a denial. A third way is to get multiple cards from a company that allows transferring credit limits between cards (Chase, and American Express).

But basically, always remember the basic rules of credit: nobody will give you credit when you *really* need it. So apply for it ahead of time when you don't look desperate

Re: Higher CL

Revelate — Tue, 07 Oct 2014 17:51:37 GMT

@Anonymous wrote:
@Anonymous wrote:
@FinStar wrote:
@Anonymous wrote:
Many factors. Payment history, income, AAoA.
+1 Exactly. Income is a definite criteria, plus depending on the lender, if there is a presence of other higher TLs on file (i.e. capacity).
Indeed. They aren't going to give you a 50k card when your income is 30k... in most cases anyways.
They will if you "accidentally" add a 0.

Don't think it'd fly in a court of law if it goes that far.

Admittedly there's income verification anyway if they have doubts, but this isn't an area that would be smart to color outside the lines on frankly: likely best case scenario is you get written off on the application completely by the lender.

Re: Higher CL

Ysettle4 — Tue, 07 Oct 2014 18:09:37 GMT

This!

Example scenarios:

Apply for an AMEX card, they approve you initially for $10K. Provided you are responsible with that card it can grow to $30K in only 61 days - with income verification. Without, the max is $25K I believe.

Apply for a few Chase cards, signature cards preferably (CSP,Marriott Rewards, Freedom signature, Ritz) because these have a min CL of $5K. Once you obtain these cards, consolidate all of the CLs onto one card -- this will close out the other "donor" cards.

So, you can see that it is easy to build out a couple of high CL cards (One big AMEX card, one big Chase card).

Re: Higher CL

OnTheRebound — Tue, 07 Oct 2014 18:11:55 GMT

In my opinion, income is the main factor in determining CL along with scores, payment history, utilities, etc. For example, I was just approved for the Citi DC with a low credit limit with high scores but low income which makes perfect sense to me even with a 4+ years perfect history with my Diamond Preferred.

High score + low income = Low CL

After all, my high scores are not going to pay the bills.

Re: Higher CL

s_haliz — Tue, 07 Oct 2014 19:45:40 GMT

@OnTheRebound wrote:
In my opinion, income is the main factor in determining CL along with scores, payment history, utilities, etc. For example, I was just approved for the Citi DC with a low credit limit with high scores but low income which makes perfect sense to me even with a 4+ years perfect history with my Diamond Preferred.
High score + low income = Low CL
After all, my high scores are not going to pay the bills.

Keep in mind, higher score is very beneficial. Many computer models are based on that (I mean automatic approval). Of course other factors still play its own role.....Like AAoA, Income, Limits on other cards, other loans etc.

Re: Higher CL

DrZoidberg — Tue, 07 Oct 2014 20:52:07 GMT

@s_haliz wrote:
@OnTheRebound wrote:
In my opinion, income is the main factor in determining CL along with scores, payment history, utilities, etc. For example, I was just approved for the Citi DC with a low credit limit with high scores but low income which makes perfect sense to me even with a 4+ years perfect history with my Diamond Preferred.
High score + low income = Low CL
After all, my high scores are not going to pay the bills.
Keep in mind, higher score is very beneficial. Many computer models are based on that (I mean automatic approval). Of course other factors still play its own role.....Like AAoA, Income, Limits on other cards, other loans etc.

For a strictly higher limit.....income and assets is the biggest factor. For instance, a lot of celebrities (and some wealthy people) have crap credit scores but a lot of their cards are $50k + limits all because of the income and available assets.

Re: Higher CL

OnTheRebound — Wed, 08 Oct 2014 02:44:52 GMT

@DrZoidberg wrote:
@s_haliz wrote:
@OnTheRebound wrote:
In my opinion, income is the main factor in determining CL along with scores, payment history, utilities, etc. For example, I was just approved for the Citi DC with a low credit limit with high scores but low income which makes perfect sense to me even with a 4+ years perfect history with my Diamond Preferred.
High score + low income = Low CL
After all, my high scores are not going to pay the bills.
Keep in mind, higher score is very beneficial. Many computer models are based on that (I mean automatic approval). Of course other factors still play its own role.....Like AAoA, Income, Limits on other cards, other loans etc.
For a strictly higher limit.....income and assets is the biggest factor. For instance, a lot of celebrities (and some wealthy people) have crap credit scores but a lot of their cards are $50k + limits all because of the income and available assets.

Exactly. Although I have low income, my wife and I have plenty of assets, liquid and otherwise (PIF real and personal property). But Citi doesn't know that. I suppose if I gave Citi proof of our assets I could convince them to up my CL to $10K? I don't know. But I'm not going to do that. $3.8K is plenty for what I'm going to use it for. I just wanted a card that gives better cash back on non 5% categories.

FWIW- My wife and I are in our 60's, retired, not rich, just very comfortable and not concerned about leaving anything to our kids as they are doing quite well on their own.