Why now a lot people want diner club ?

[enharu]

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@bigDEElight wrote:

You proved baller4life's point while simultaneously missing theirs (gender neutral pronoun usage here).

It's not about getting a lender to match dollar for dollar. But a lender is more inclined to view your application and reward a more favorable limit if they see a WELL MAINTAINED high credit limit on your report at the time of application. Citi may not give you a 40K limit, but they might give you a 10K limit rather than the 1K limit they would give someone with similar scores but less available credit. You start on a higher rung of the latter than your credit profile might otherwise warrant in the absence of another high credit limit. So yes, higher limits beget higher limits even if it's not dollar for dollar.

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I am not saying he's entirely wrong, and I understand what you mean. Basically, you're saying the same thing that I've been saying. It may have been the way that I phrased things that's causing the misunderstanding.

So yes, a lender may be more inclined to reward a more favorable limit if they see a well maintained high credit limit. That is true. However, it isn't their top priority or the 1st thing that comes to their mind. First of all, they will look at your credit history, income, etc. Let's say your income is 100k and you have 100k in CL with your highest CL being 50k. It's going to be a tough sell for any lender to issue you anything close to 50k. Even for a 10k limit, it's going to be a tough sell with certain banks. 

A favorable limit is issued based on your credit history and income. I know many people who used to be international students in the US. All they had is one cred card with a low limit, such as a 1k Freedom, that they got via special considerations route (checking balances, banking relationships, etc). One guy I know, landed a job at mckinsey, and still used his card for the first few months till it really became a big hassle having to constantly pay the card multiple times each month as there's a lot of reimbursable expenses for consultants. Applied for SPG, and Amex approved him instantly for 18k. And the other only account he had was a 1k freedom. No auto loans, no mortgages, etc. So in his scenario, what contributed to the high limit?

Even without any high limit credit lines in one's credit profiles, that's not going to stop the lender from issuing you one. If you truly deserve it, you will get it. Their decisions are after all primarily based on income, credit history, DTI etc, and your other existing limits may just help sweeten or worsen the deal. For example, if you have a recent derog, low or no income, high DTI ratio, or a low credit score......Citi, Amex, Chase, etc are not going to issue you a credit card with a decent CL (even if u do get approved) just because you have a 20k card with another bank.

I am not saying they don't look at your other credit lines entirely, but this is probably one of the last few things they look at.

EDIT: didn't know baller is a girl. Please kindly ignore all the "he" and replace it with "she".