Congratulations on your rebuild and Apple Card CLI! I also started with a $250 SL with no prior credit history and have since grown the card to $3000. I am pleased with the card's ability to grow!
@Ammod wrote:Just to clarify, in August 2019 your sl is $250, and they increase your limit in a November 2020 to $2500. So between August and November your limit is only $250. But, you said your were spending between $500 to $1000 per month on the card. How is that possible? Did Apple let's you charge over the limit? Even if you paid in full, how are you able to charge over the limit to begin with.
Welcome to My Fico Forums, @Ammod.
A lot of our members with lower-limit cards (say for example under $500 to $1000) "cycle" their limits multiple times per month. In the old days of paper statements and mailing checks, this would have been much more difficult if not impossible. Today, by making extra electronic payments midcycle through a website or mobile phone app, a consumer can free up his credit line to use credit in excess of it for the month without ever exceeding the credit limit. So if you had a $500 limit, ran it up every week, paid it off, and then charged another $500 after the payment cleared, you could put $2000 in one month's charges on a $500 limit.
Some lenders can be sensitive to this technique, though, so use it with caution. Especially on larger credit limits, it can start to make them wonder if there is money laundering or illegal activities going on that they don't want to be involved with. Plus, their underwriting department approves you to spend a certain credit limit on the card based on your ability to repay with the income, debts, and credit score you had at time of approval. Most consumers use much less than their limit every month, or no more than the limit. So spending multiple times a limit is not really how the lender envisioned the card being used, probably goes outside how they calculated your limit, and may make them uncomfortable as to whether you'll be able to repay after you run it up. All that said, it's easier to get away with on those smaller credit limits. It's less risk for the banks and they also are more understanding that a small limit may be easily exceeded.
