@Anonymous wrote:I have a GAP card, which can be used at Old Navy, Bananna Republic, Atheletica, etc. have had it since 08/2018 have asked for a CLI a number of times been declined each time, my credit line is just $200.00.
Yet have purchased more than that since the approval.
Not sure what their underwriting is, that is the terms between the vendor and the creditor, often determines the willingness of a creditor to approve or deny a CLI.
Closed loop cards often are designed to benefit the bank /creditor period.
If the terms are more favorable to a creditor then CLI's are more favorable to a consumer, if they get less from each purchase, then a creditor will most likely be more difficult to increase credit limits.
Think about store cards letting go of a portion of each sale to a creditor, just as vendors pay 2-5% to accept Visa/Mastercard etc. payments.
GAP is undermining their own possible success, considering their brands even on sale is double what most vendors are offering at today's sale prices. That's over capitalization, that will eventually lead to them either accepting a change or dieing off.
The costs involved to do business in modern times is heavily influenced by credit lines, more so than merely how much a person earns as a consumer.
That's the part that Gap has failed to understand, and is why they are running a deficit.
The creditor most likely has plenty of funds to make credit available, or higher credit amounts available, but without having proper terms the creditor will not go out of their way to advance a vendors product if they aren't willing to invest in their own products.
That's being too cheap.
It's not the credfitors fault, but the vendor, this is from my research while writing my book called "Unlocking America", research started in 2001. yea a long time in the works.
