Do you think current limits impact future limits?

[redpat]

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@Gmood1 wrote:

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@Anonymous wrote:

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@redpat wrote:

At a certain point in time higher and higher limits or more and more credit doesn't mean much.  You can only borrow so much and the creditors will AA you once they think it's out of hand.

Funny how I see on these forums w/ Amex 3x, 50k is the new 25k.  25k is a great credit limit to have but now some want to push it to 50k then back out if they get the t form, then try for a lower limit.  Look Amex will never let you get that high anyway. 

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Well if your income "supports" the higher limits why not go for it, right?  I think this phrase is one of the most hilarious out there. 

 Give a guy with $50k income a $50k line of credit over time because his income "supports" it.  In what world?  This person couldn't even bounce back from running up 50% of their limit, much less maxing it out.

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Are you one hundred percent sure of that? Lol

I know several with those $50k incomes that would make you envious, if you saw their bank accounts. Lmao

There are no absolutes in what a person should have as a limit, just because some of us can't manage our own money. If they have the spending power, give them a limit that allows it.

I'm not here to push my thinking on others. Simply because I have no idea what their real world circumstances are.

Back to the original question, if over time that individual displays they have the discipline in managing their accounts. And the profile fits. The limits will gravitate towards one another eventually.

Not all lenders will try to meet other CLS in the beginning. Some need time to see how you handle your accounts. Most CUs come to mind of being this way, besides NFCU. 

There are no guarantees in your limit size regardless of your current limits or income. I've seen it on these forums many times. A person feels insulted because they received a $2000 limit and earn several 100,000 a year. Lmao

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Lol! If they spent it then they wouldn't have it.

[Gmood1]

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@redpat wrote:

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@Gmood1 wrote:

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@Anonymous wrote:

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@redpat wrote:

At a certain point in time higher and higher limits or more and more credit doesn't mean much.  You can only borrow so much and the creditors will AA you once they think it's out of hand.

Funny how I see on these forums w/ Amex 3x, 50k is the new 25k.  25k is a great credit limit to have but now some want to push it to 50k then back out if they get the t form, then try for a lower limit.  Look Amex will never let you get that high anyway. 

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Well if your income "supports" the higher limits why not go for it, right?  I think this phrase is one of the most hilarious out there. 

 Give a guy with $50k income a $50k line of credit over time because his income "supports" it.  In what world?  This person couldn't even bounce back from running up 50% of their limit, much less maxing it out.

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Are you one hundred percent sure of that? Lol

I know several with those $50k incomes that would make you envious, if you saw their bank accounts. Lmao

There are no absolutes in what a person should have as a limit, just because some of us can't manage our own money. If they have the spending power, give them a limit that allows it.

I'm not here to push my thinking on others. Simply because I have no idea what their real world circumstances are.

Back to the original question, if over time that individual displays they have the discipline in managing their accounts. And the profile fits. The limits will gravitate towards one another eventually.

Not all lenders will try to meet other CLS in the beginning. Some need time to see how you handle your accounts. Most CUs come to mind of being this way, besides NFCU. 

There are no guarantees in your limit size regardless of your current limits or income. I've seen it on these forums many times. A person feels insulted because they received a $2000 limit and earn several 100,000 a year. Lmao

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Lol! If they spent it then they wouldn't have it.

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So if I spent $25k on my Home theater system. And have a half million in my bank accounts, you don't think I'll have any left? LMAO 

No one said you have to spend that kind of money every month.

[redpat]

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@Gmood1 wrote:

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So if I spent $25k on my Home theater system. And have a half million in my bank accounts, you don't think I'll have any left? LMAO 

No one said you have to spend that kind of money every month.

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LMAO, look I sure can spend 25k -100k but I don't need a credit card with that much of a limit for the chance that I may buy such a large ticket item.  I know most of us reward point **bleep**, I'm one of them but gee wiz, I'll just cut a check for that one or to think of it use my Amex Plat w/ a call before hand!

[Gmood1]

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@redpat wrote:

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@Gmood1 wrote:

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So if I spent $25k on my Home theater system. And have a half million in my bank accounts, you don't think I'll have any left? LMAO 

No one said you have to spend that kind of money every month.

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LMAO, look I sure can spend 25k -100k but I don't need a credit card with that much of a limit for the chance that I may buy such a large ticket item.  I know most of us reward point **bleep**, I'm one of them but gee wiz, I'll just cut a check for that one or to think of it use my Amex Plat w/ a call before hand!

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My point is ..Why assume? You nor I have any idea what someone post here can afford.

When you walk in a bank and everyone knows your name...You are a boss! Lol 

Whether you earn $50k o $200k.

I don't have it quite like that. I do know some that do.

I'm going to get as many points or cash back as I can. I don't care if I have to drop $30k on a card. If I'm spending it anyway.

[redpat]

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@Gmood1 wrote:

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@redpat wrote:

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@Gmood1 wrote:

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So if I spent $25k on my Home theater system. And have a half million in my bank accounts, you don't think I'll have any left? LMAO 

No one said you have to spend that kind of money every month.

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LMAO, look I sure can spend 25k -100k but I don't need a credit card with that much of a limit for the chance that I may buy such a large ticket item.  I know most of us reward point **bleep**, I'm one of them but gee wiz, I'll just cut a check for that one or to think of it use my Amex Plat w/ a call before hand!

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My point is ..Why assume? You nor I have any idea what someone post here can afford.

When you walk in a bank and everyone knows you name...You are a boss! Lol 

Whether you earn $50k o $200k.

I don't have it quite like that. I do some that do.

I'm going to get as many points or cash back as I can. I don't care if I have to drop $30k on a card. If I'm spending it anyway.

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Our Commerical Banker hates clients that have large credit limits because they get killed in loan commitee on credit line renewals trying to explain why the client has so much personal available credit.

[sillykitty1]

I agree that it depends on the lender.  But IME, overwhelmingly lenders have come closer or matched existing limits.  When I app, if the SL isn't close to my existing highest limit, then I always recon the limit.  In almost all cases the creditor either matched or came significantly closer to my highest limits

Lenders that automatically matched or came close to my highest existing CL's

Chase

PenFed

Nasa

Lenders that matched or came close to my highest existing CL's on SL recon

Citi

Barclays

BOA

US Bank

Lenders that did not care about existing limits

JCB

Others

Amex - obviously no ability to recon with them.  They were much slower than other lenders at giving me $20K+ limits

Cap1 - This was the one account I had when I had a low FICO.  Once my FICO was in the 700's Cap1 EO raised my limit, but not close to my highest limits.

Consumer's CU, IL - Manual underwriting, when apping I asked them to match my highest CL and they did

[Anonymous]

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@Gmood1 wrote:

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Are you one hundred percent sure of that? Lol

I know several with those $50k incomes that would make you envious, if you saw their bank accounts. Lmao

There are no absolutes in what a person should have as a limit, just because some of us can't manage our own money. If they have the spending power, give them a limit that allows it.

 

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Based on the information provided, yes I am sure of that.  I agree with you 100% that someone with a $50k income could have a massive savings account balance, but potential creditors don't see this.  They don't have that information so IMO it can't be considered.  Yes there are examples of people being able to provide such data during a POI process... but I'm talking just the typical info that is gone off of 9 times out of 10.

I person with $50k-$70k income that has $150k-$300k in credit lines for example 9 times out of 10 IMO isn't going to have the income to "support" those limits if they were ever to use them substantially.

[Anonymous]

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@Gmood1 wrote:

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So if I spent $25k on my Home theater system. And have a half million in my bank accounts, you don't think I'll have any left? LMAO 

No one said you have to spend that kind of money every month.

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The example you are drawing up is certainly that of an outlier. 

What percentage of people do you honestly believe have this going on?  People with $50k income, $150k-$300k in credit lines that have this kind of liquid assets on hand?  And again, creditors aren't looking at your bank statements (in general) and thus aren't using that information in their lending decisions.

[woodyman100]

Yes

[austinguy907]

Long story short everything is a mystical algorithm usually when it comes down to risk assessment and underwriting.  How someone manages things in the long run is more determinate in what limit they will get when opening a new account.  The computers working on the application have set variables they're looking at and a point system outside of just a credit score in which they evaluate approve/deny and then move onto what kind of limit they should assign.  Some are better at doing this than others i.e. Synch and their notorious $637 approvals and then say Chase with $7500.  Some set their model to X points equals a match at the highest reported and others like CU's will tend to cap a new account at $10K just on their policies based on what they tolerate for a new customer.  

Some of the reports around here at times are questionable when you see someone report a 10K amex approval with a bunch of junk in their profile and posts where they're frantic about every single point for an upcoming mortgage app.  Other times it just seems silly to see someone reporting 500K spend in airfare in a year but, then again there are some SB owners that might find the time to haunt the forums.

All in all it's just a game between us and the banks that issue the cards.  We're both gambling for high limits and hoping there's not a default.  With CC's it's different because there's no asset tied to the account to secure the funds which is where the fun comes to play.  Most CU account paperwork will have a clause for remedy in the paperwork where if you stop paying your CC they can place a hold for the balance on your liquid assets with them.  Or similarly you stop paying your car loan with the same CU the same thing can happen in the event of delinquency.  Banks don't have the time or man power to do the same thing but, they'll take the loss to offset taxes at the end of the year and have plenty of lawyers to file suit against you for a judgement.

As to chasing higher than needed limits that's a personal thing for most.  Some take the stance of at most I'll ever need is XX,XXX and others take the approach after many years of experiences that if I want to spend X then I need X to keep utilization at Y.  Whether or not a 50K limit factors into utilization is always going to be debateable since most don't utilize that much of the limit to see a scoring difference or not.  It's just a rumor unless someone can produce hard evidence from FICO documenting what goes into scoring.  

If you want higher limits then act like you already have them and treat your cards right...quit apping, resist spending to the limti, don't make mutiple payments, get rid of store cards, zap the predators from your profile.  Manage things correctly and take the time to read through some anecdotes before pressing that apply button.  read the T&C's to see what the fine print says and who issues the card to avoid hitting multiple accounts from the same lender i.e sync / commenity.  Put together a game plan of where you want to be and with what lenders.  Sure there's plenty of points and rewards out there if that's what you're into but, do you really need 4-5 cards with the same lender?  Keep things diversified and things will be alright in the long run.  Don't app for something because it's the flavor of the week around here.  Let it simmer down for 3-6 months and see what happens with those accounts over time... do they grow? do they hp for growth? are they risk tolerant?