topic Re: Other 18-20 year olds have higher CL in General Credit Topics

Other 18-20 year olds have higher CL

Subexistence — Wed, 21 Jun 2017 02:44:12 GMT

A lot of times I'm noticing that a lot of the other members of this forum around my age group have much higher credit limits than I do. I want to know what they are doing that I'm not doing that let's them have more success than I do. I know that credit limits don't matter that much except for Lexis Nexis scoring but I'd still like high CL trophies.

Examples include

http://ficoforums.myfico.com/t5/Credit-Card-Approvals/100k-Club-and-Credit-Limit-Increases/td-p/4912117

http://ficoforums.myfico.com/t5/General-Credit-Topics/A-19-year-old-s-1-year-anniversary-on-myFICO-Over-100K-credit/td-p/4361476

http://ficoforums.myfico.com/t5/Credit-Card-Approvals/AMEX-61-day-CLI-10k-gt-25k/td-p/4980101

I'm not trying to target anyone, I'm just posting those examples to show what I mean.

The only thing I can think of is AU and co-sign which I never got the chance to do. My dad pulled his Ex08 which was 841 which means he could have seriously boosted my score!

Re: Other 18-20 year olds have higher CL

AverageJoesCredit — Wed, 21 Jun 2017 05:04:06 GMT

You hit the nail on the head. Most of the time they benefitted from being an AU on someones lengthy credit history and went from there.

Re: Other 18-20 year olds have higher CL

Anonymous — Wed, 21 Jun 2017 05:08:26 GMT

Yup AU history, and I am no longer in the $100k club after getting blue enveloped. I have received better cards since then though! Keep at it you just need to age your profile for awhile.

Re: Other 18-20 year olds have higher CL

Anonymous — Wed, 21 Jun 2017 06:20:46 GMT

Really ? ? ?

"Other 18-20 year olds have higher CL"

Subexistence wrote:
A lot of times I'm noticing that a lot of the other members of this forum around my age group have much higher credit limits than I do. I want to know what they are doing that I'm not doing that let's them have more success than I do. I know that credit limits don't matter that much except for Lexis Nexis scoring but I'd still like high CL trophies.

Examples include
http://ficoforums.myfico.com/t5/Credit-Card-Approvals/100k-Club-and-Credit-Limit-Increases/td-p/4912117
http://ficoforums.myfico.com/t5/General-Credit-Topics/A-19-year-old-s-1-year-anniversary-on-myFICO-Over-100K-credit/td-p/4361476
http://ficoforums.myfico.com/t5/Credit-Card-Approvals/AMEX-61-day-CLI-10k-gt-25k/td-p/4980101

I'm not trying to target anyone, I'm just posting those examples to show what I mean.

The only thing I can think of is AU and co-sign which I never got the chance to do. My dad pulled his Ex08 which was 841 which means he could have seriously boosted my score!

Re: Other 18-20 year olds have higher CL

pipeguy — Wed, 21 Jun 2017 10:34:12 GMT

As long as you have usable credit lines, I wouldn't be in a hurry to seek out ego-trophies as far as credit limits. One issue, especially for the inexperienced (no offense meant) is that credit limits tend to be looked at as money in the bank to spend - its NOT. I have no idea what your income is, but credit card debt can quickly add up and become a major problem when you want to "get on with your adult life" meaning buying a house/car/live on your own.

Just a thought from an old guy....

Re: Other 18-20 year olds have higher CL

Anonymous — Wed, 21 Jun 2017 11:52:28 GMT

I would suggest temporarily becoming an AU on an account that has a $25k+ CL long enough for it to report and you app for a card or two that may then extend you a higher SL based on the current $25k+ CL on your report. Once you get a higher CL or two on your own, you can dump the AU account.

Re: Other 18-20 year olds have higher CL

RobertEG — Wed, 21 Jun 2017 16:34:45 GMT

Issuance of credit cards to those under the age of 21 is now restricted under the Card Act, and requires either a co-signor who is at least 21, or a showing by the consumer of independent assets to pay any debts. Thus, credit limits are often pegged to having a co-signor to seek payment of any defaulted accounts.

I would not assume that others under the age of 21 who have higher credit limits are based on what they are doing, or on what you are not doing.

Re: Other 18-20 year olds have higher CL

Anonymous — Wed, 21 Jun 2017 17:04:06 GMT

@RobertEG wrote:
Issuance of credit cards to those under the age of 21 is now restricted under the Card Act, and requires either a co-signor who is at least 21, or a showing by the consumer of independent assets to pay any debts. Thus, credit limits are often pegged to having a co-signor to seek payment of any defaulted accounts.
I would not assume that others under the age of 21 who have higher credit limits are based on what they are doing, or on what you are not doing.

Robert, respectfully I disagree. I believe my AU history with Chase made the world of difference when I got my first approvals with them. I am certain without the AU history they would not have touched me with a ten foot pole. I have also never been asked for a co-signer, but I also have a healthy income. All of my credit limits have been assigned independently of a co-singor and I have now requested that I be removed as an AU so my credit profile is now 100% mine.

Re: Other 18-20 year olds have higher CL

RobertEG — Thu, 22 Jun 2017 05:57:28 GMT

Provisions of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (a.k.a., the CARD Act, or Public Law 111-24), relating to issue and use of credit cards by young adults:

• Credit card issuers are prohibited from issuing credit cards to people under age 21 unless applicants have a co-signer or can prove that they can afford to make payments (i.e., have a verifiable annual gross income). The co-signer can be a parent, legal guardian, spouse, or any other individual age 21 or older having the means to repay a young credit card applicant’s debts.

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.

Re: Other 18-20 year olds have higher CL

medicgrrl — Thu, 22 Jun 2017 07:42:07 GMT

That's very interesting. I'll be curious to see what happens to my son's credit lines.

Re: Other 18-20 year olds have higher CL

Anonymous — Thu, 22 Jun 2017 11:59:23 GMT

That provision doesn't mean much with respect to being able to get a credit card at under 21 years of age. It basically says if you have a job, you can get one. A job that you can verify income on. I have about 40-50 employees that work for me that are under 21. All of them can verify their income, so all can get a CC.

The part about the $500 limit or 20% of income is interesting though.

Re: Other 18-20 year olds have higher CL

medicgrrl — Thu, 22 Jun 2017 15:08:04 GMT

My son's just about maxed out on the 30% overall rule. He works part-time and only stated about 13k in annual income.

Re: Other 18-20 year olds have higher CL

iced — Fri, 23 Jun 2017 00:42:14 GMT

@Subexistence wrote:
A lot of times I'm noticing that a lot of the other members of this forum around my age group have much higher credit limits than I do. I want to know what they are doing that I'm not doing that let's them have more success than I do. I know that credit limits don't matter that much except for Lexis Nexis scoring but I'd still like high CL trophies.

Examples include
http://ficoforums.myfico.com/t5/Credit-Card-Approvals/100k-Club-and-Credit-Limit-Increases/td-p/4912117
http://ficoforums.myfico.com/t5/General-Credit-Topics/A-19-year-old-s-1-year-anniversary-on-myFICO-Over-100K-credit/td-p/4361476
http://ficoforums.myfico.com/t5/Credit-Card-Approvals/AMEX-61-day-CLI-10k-gt-25k/td-p/4980101

I'm not trying to target anyone, I'm just posting those examples to show what I mean.

The only thing I can think of is AU and co-sign which I never got the chance to do. My dad pulled his Ex08 which was 841 which means he could have seriously boosted my score!

Don't lose any sleep over this. What credit limits one has is no real indication of...well, anything. They're not trophies, and they certainly don't measure an individual's success.

Nobody's judging you for not having a bunch of cards, so why judge yourself?

For what it's worth, I have less total CL than any of the three posts you referenced and I have 20 years head start on all of them.

Re: Other 18-20 year olds have higher CL

Subexistence — Fri, 23 Jun 2017 03:18:18 GMT

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.

Does anyone know if this is enforced because I might need to do some serious income/asset bluffing if that's enforced. I imagine its pretty hard to enforce since card companies might not update other card companies what current limits are at. Also business card which don't report to personal bureaus are another way around this pesky limitation.

Re: Other 18-20 year olds have higher CL

pipeguy — Fri, 23 Jun 2017 03:24:26 GMT

@Subexistence wrote:

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.

Does anyone know if this is enforced because I might need to do some serious income/asset bluffing if that's enforced. I imagine its pretty hard to enforce since card companies might not update other card companies what current limits are at. Also business card which don't report to personal bureaus are another way around this pesky limitation.

Considering that the CFPB goes after banks hard (major fines) for real or pervieved violations, I suspect that banks (lenders) are real careful even if self governing when it comes to a major reform law like the CARD Act, especially because one reason for the act was lenders handing out credit cards to college students like candy.

Re: Other 18-20 year olds have higher CL

Anonymous — Fri, 23 Jun 2017 03:41:38 GMT

@Subexistence wrote:

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.

Does anyone know if this is enforced because I might need to do some serious income/asset bluffing if that's enforced. I imagine its pretty hard to enforce since card companies might not update other card companies what current limits are at. Also business card which don't report to personal bureaus are another way around this pesky limitation.

Card companies do not send their CLs to other card companies. What is done, however, is that they submit these data to the three credit bureaus. This is how FICO is able to determine your CC utilization, for example, because your cards are all listed with their respective credit limits.

And once you become a card holder with a particular CC company, you have authorized them to do soft pulls of your credit reports whenever they like.

Thus all your CC companies can see your CLs for all your cards, just by doing soft pulls.

CC companies do this not only for people under the age of 21 but for people of all ages. They need to be able to see that you are getting nearly maxxed out on some other CCC'ds card, even if you are not on theirs. That's just one of many reasons.

Re: Other 18-20 year olds have higher CL

Anonymous — Fri, 23 Jun 2017 04:38:11 GMT

Dear OP,

Best to stop comparing yourself to others right now. Just don't. It distracts you from doing what you need to do and from making sound decisions about yourself by yourself and for yourself.

JoeBob

Re: Other 18-20 year olds have higher CL

Anonymous — Fri, 23 Jun 2017 04:47:49 GMT

@RobertEG wrote:
Provisions of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (a.k.a., the CARD Act, or Public Law 111-24), relating to issue and use of credit cards by young adults:

• Credit card issuers are prohibited from issuing credit cards to people under age 21 unless applicants have a co-signer or can prove that they can afford to make payments (i.e., have a verifiable annual gross income). The co-signer can be a parent, legal guardian, spouse, or any other individual age 21 or older having the means to repay a young credit card applicant’s debts.

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.

Welp that is interesting it appears Chase is violating that provision for me I am certainly not going to tell anyone though I have charged upward of $20k+ at a time on my Chase card. The aggregate limit is well exceeded too. As far as I am concerned the Card act can shove it. Thanks for that interesting info though Robert! You always provide concise factual info, very appreciated!

Re: Other 18-20 year olds have higher CL

Anonymous — Fri, 23 Jun 2017 05:23:39 GMT

@Subexistence wrote:

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.

Does anyone know if this is enforced because I might need to do some serious income/asset bluffing if that's enforced. I imagine its pretty hard to enforce since card companies might not update other card companies what current limits are at. Also business card which don't report to personal bureaus are another way around this pesky limitation.

My guess is it depends on the lender but I know for a fact that it is not enforced by Chase lol. Also its not just a bluff it is a Federal crime to intentional misrepresent your income/assets on a credit application just FYI.

Edit: Come to think of it Navy Fed does as well. I was approved for my $15k card when I was an employee with them part time, at the time it was equal to 100% of my expected salary lol.

Re: Other 18-20 year olds have higher CL

Anonymous — Fri, 23 Jun 2017 06:36:33 GMT

1) never get into he said/she There are many people who misstate facts when it comes to money. . I tend only to believe bank statments/credit card statements(Not talking about here but the school kids) 2) When I went to school back in the Vietnam era I recall getting my firstcard offer in the mail. It was for $2,000 Visa through a Bank that became part of Wachovia . The mail offer was a lot higher than the $500 my mother got me for my 18th birthday. (my first card) I understand the reason for the CARD act but for whatever reason the kids at my school were not marketed but by Wachank Bank of America had several ATMS on campus and a branch 50 feet .off campus. You had to go them to sign up. No BOA mail pieces.