topic Re: Card Limit < $2000 in General Credit Topics

Card Limit < $2000

Crookid — Thu, 20 Sep 2018 00:18:34 GMT

Have been denied in the past before my rebuild and have seen this reasoning before:

Card Limit below $2000

How important is having my cards have a $2000+ limit?

Should I deposit enough on my secured cards to create this limit?

Re: Card Limit < $2000

FinStar — Thu, 20 Sep 2018 02:59:33 GMT

What lender was the denial from? When did you apply?

Re: Card Limit < $2000

Anonymous — Thu, 20 Sep 2018 04:24:04 GMT

Are you getting this message from prime lenders?

Re: Card Limit < $2000

Crookid — Thu, 20 Sep 2018 04:28:18 GMT

I believe it was for an auto loan when my credit had seen better days. Now, I'm wondering if I should just put up the cash on my secured cards to avoid this situation again. Does FICO grade cards above 2k differently than under?

Re: Card Limit < $2000

Anonymous — Thu, 20 Sep 2018 04:33:36 GMT

I've never gotten that as a reason for denial. If those data points in your sig are correct then I would imagine that that is the real reason.

If it were me I'd just lay low and let the accounts that you do have age. Your inquires are kind of high and your AAoA is pretty new you just need time and patience. Let your reports improve naturally.

Re: Card Limit < $2000

Anonymous — Thu, 20 Sep 2018 06:28:07 GMT

@Crookid wrote:
I believe it was for an auto loan when my credit had seen better days. Now, I'm wondering if I should just put up the cash on my secured cards to avoid this situation again. Does FICO grade cards above 2k differently than under?

Are all of your cards secured?

Imo, I would pre-qual for Cap1 and Discover and start to ween out some of your current cards.

Fico doesn’t grade lower limit cards differently (someone please correct me if I’m wrong). Lower limit cards could cause some irritation with utilization, because it’s so easy to max them out, which would have a negative affect on FICO.

Re: Card Limit < $2000

SweetCreditObsession — Thu, 20 Sep 2018 06:52:08 GMT

I've got experience being denied but I've never seen that reason. As others have stated, allow your accounts to mature, pay on time and in full if possible. You should see improvement in 6-12 months. Be patient and best wishes.

Re: Card Limit < $2000

AverageJoesCredit — Thu, 20 Sep 2018 11:44:13 GMT

No, you dont need 2k plus to get approved for things. Continue to work on your credit. As your scores rises, you will get better cards and can eliminate some of uour current cards. Best of luck

Re: Card Limit < $2000

K-in-Boston — Thu, 20 Sep 2018 15:11:03 GMT

If that was a denial reason, the lender was not using a FICO score for underwriting decisions. Not having bank cards over x limit is not a FICO scoring reason code: https://www.fico.com/en/resource-download-file/3425

While it would be very difficult to keep your utilization in check if the cards were regularly used, it would be quite possible for someone to have a handful of $500 credit cards and still have FICO credit scores in the 800s provided other factors in their credit profile supported it.

Re: Card Limit < $2000

SouthJamaica — Thu, 20 Sep 2018 17:00:46 GMT

@Crookid wrote:
Have been denied in the past before my rebuild and have seen this reasoning before:

Card Limit below $2000

How important is having my cards have a $2000+ limit?
Should I deposit enough on my secured cards to create this limit?

Having a $2000+ limit is of zero importance.

Re: Card Limit < $2000

Anonymous — Thu, 20 Sep 2018 17:25:44 GMT

It is possible (as a previous commenter observed) that the lender was using a scoring model other than FICO. The biggest competitor to FICO is Vantage, and Vantage does indeed care about the size of credit limits, in and of themselves and apart from utilization.

Re: Card Limit < $2000

Anonymous — Fri, 21 Sep 2018 00:53:20 GMT

@Anonymous wrote:
It is possible (as a previous commenter observed) that the lender was using a scoring model other than FICO. The biggest competitor to FICO is Vantage, and Vantage does indeed care about the size of credit limits, in and of themselves and apart from utilization.

Interesting... I guess that explains why my Credit Karma scores have been lower since I CLD'd all my cards back in January. Well, I paid off a car loan too.

But as for the OP, I've never heard of a denial because of no limits over a certain amount before. Must have been a specific lender using a specific scoring model or algorithm... I would be in trouble if I applied for a loan from them. In the past I've gotten car loans and even a mortgage when I only had a $500 limit card, though I had higher limit cards I had closed that were still reporting back then.

Re: Card Limit < $2000

Brian_Earl_Spilner — Fri, 21 Sep 2018 00:59:49 GMT

@Anonymous wrote:
@Anonymous wrote:
It is possible (as a previous commenter observed) that the lender was using a scoring model other than FICO. The biggest competitor to FICO is Vantage, and Vantage does indeed care about the size of credit limits, in and of themselves and apart from utilization.
Interesting... I guess that explains why my Credit Karma scores have been lower since I CLD'd all my cards back in January. Well, I paid off a car loan too.

But as for the OP, I've never heard of a denial because of no limits over a certain amount before. Must have been a specific lender using a specific scoring model or algorithm... I would be in trouble if I applied for a loan from them. In the past I've gotten car loans and even a mortgage when I only had a $500 limit card, though I had higher limit cards I had closed that were still reporting back then.

Signature Visas would be an example of cards that would deny you if you couldn't qualify for a high enough SL. If they have a lower tier version, you'd get that, but if all they offered was signature, like the NFCU Flagship, you can't be approved unless you can qualify for that $5k SL. And there are plenty of people here that were denied a Flagship, but turned around and got the Amex. And since lenders tend to give limits comparable to your existing lines, it would explain it.

Re: Card Limit < $2000

Anonymous — Tue, 25 Sep 2018 11:55:53 GMT

The 5K SL on Visa Signature cards is not set in stone. My Chase Amazon card is a Visa Signature but the limit is 4.1K.

Re: Card Limit < $2000

Brian_Earl_Spilner — Tue, 25 Sep 2018 12:24:28 GMT

@Anonymous wrote:
The 5K SL on Visa Signature cards is not set in stone. My Chase Amazon card is a Visa Signature but the limit is 4.1K.

And you can get a Chase Amazon Signature with $500 limit, which is why I specifically used the Flagship in my example as you must be able to get a $5k SL to get one.