The Definitive Amex 3X CLI Guide

[Anonymous]

I just stumbled upon this thread.  I did not read all 250 pages of it.  I did a request, and my BCE went from 1000 to 3000.  That was easy!  I've had the account almost 90 days.

[Anonymous]

About to request a CLI on my BCP.  I was initially approved for 15k when I put that I made 20k a year.  I now make around 28-30k a year so I'm not going to try and request a 45k limit since I'd probably get rejected.  That being said, I don't know which limit to really ask for. =X

[Anonymous]

I don't really understand CL's relative to income.  Maybe some one can chime in and clear this up.  I mean you have guys with $50k imcome with $150k in credit lines.  If you max out all credit lines, you clearly can't pay back those debts. 

Your example is another good one.  You cited a $15k limit on $20k income.  Assuming NO other credit lines, after taxes chances are your income couldn't cover that $15k limit if you maxed it out, especially with interest kicking in month to month. 

Is there some sort of equation that creditors look at when it comes to this?  Obviously they can see your other CL's when they HP you... so they know if you have a $50k income and $150k in credit lines already that if they extend you more credit they are simply hoping that you don't ever have the need to max out your credit lines (as you obviously can't pay them back).  Hopefully someone can explain this and/or what thought process is in place for creditors when making lending decisions, limits, etc.

[Anonymous]

Yeah, previously my only other card was a Discover It card with a 5k limit (And at the time, about 20% UTI) and then I had a car loan as well.  I was only 22 at the time (Last September) so I didn't have very old credit or anything, so I don't really know how or why I got approved for so much.  I just chalked it up to my credit (Which was around 750) being good.

[Anonymous]

I hear you.  Your scores absolutely are indicative of decent to nice credit limits.  It does raise a few eyebrows with respect to your income though.  Not pointing the finger at you btw, I'm just speaking in general of those that have credit limits at or in excess (many times often) of their annual income. 

Hopefully someone pops into this thread and gives some feedback on overall combined credit limits verses income.  I would assume that those that have overall credit limits of 3X their income (give or take) they are considered least risky in terms of ever having to use those credit limits anywhere near their max, otherwise why would a creditor ever extend those limits to them in the first place.

[Anonymous]

In my understanding, income is only one factor in the equation (and of course various creditors give it different weight).  It's obviously an important one because it's an asset you can reasonably expect to have in the future (although, keep in mind that it's not guaranteed either, so it's not perfect).  There are other assets you can have (savings accounts, investments, HSAs, retirement accounts, etc.).  

Keep in mind as well that "credit limits" aren't really designed to be "total credit you should use."  Most people with that much credit relative to that level of income almost always use a tiny to small fraction of that total available credit.  Keep in mind that banks do keep an eye on your overall credit usage across creditors, so if you start maxing out credit, you're going to start getting adverse action from creditors (credit limit decreases, closed accounts, etc.).  With credit, it's almost like you shouldn't act like you need it and you'll get it.

[Anonymous]

I was initially denied a CLI upon activation. Applied again at 75 days, CSR said I was denied but he will forward my account to underwriter for further review due to this being my 2nd denial. Told to wait 24-48 hrs. Signed onto account to discover I was given a cushion of $4K from SL $2K! Thank the Holy Lord!

Still no email confirming my approval! Thanks again myFicoers for the wealth of knowledge on this thread. My rebuilding journey would never be where it is today!

[Anonymous]

I applied just a second ago just because.  Asked to go from 15k-20k and was countered with 18.2k.  I took it since I didn't know if declining would have let me talk to a CSR to try and get the 20k.

[Anonymous]

So they gave you a SL of $15k which you immediately called and got reconned to $18.2k?  What was the EX score that they pulled for you?

If you call and recon your limit right out of the gate, doesn't that mean no chance at a 3X CLI in 61 days (possibly no CLI at all)? 

[Anonymous]

No, sorry, my verbage may not have been right.

My post a couple above my previous post stated that I've had the card for nearly a year already.

I requested a CLI for the first time since opening the card (Which was in September 2015).  I knew based on my income of 28k per year that I would not be approved for a 3x CLI since that would increase my limit to 45000 for that card which would be more than 1.5x my yearly income, so I put in a request for a 20k total line and was countered with 18.2k.  Hopefully that makes sense now.

For reference, my EX score was 750 when I opened the card, and it's 760 now.  Although, the soft pull may have been when my score was up at 775.  It dropped in the last couple weeks due to me paying off my car and opening the Chase Sapphire Preferred card.