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Credit Card Management...So many cards...So many limits

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Established Contributor

Re: Credit Card Management...So many cards...So many limits


@wasCB14 wrote:

@BrutalBodyShots wrote: The smarter system and the way it should work IMO is that when one of those times comes someone requests a CLI since they actually "need" it. 



Keep in mind a lot of people with significant spend/income/assets have:

- NPSL Amex charge cards


I have had AMEX before.  From my understanding about their NPSL, they base your ability to charge on prior month's activites.  It's not "unlimited', just not "preset".  So if you charge $2K per month on it for years and all of the sudden want to charge $25K on it, they would likely just deny it unless maybe you had previously built up to that level of charges slowly over time and it showed in your history. 




Total Length of Credit = 35+ years; AoOA (Currently open accounts) = 26+ years;
AAoA = 9+ years; AoYA = less than 1 year (Nov 2019)
Total Open Credit Lines Over $440K. Utilization Less Than 1%. Inquiries until May 2020 (TU:2 -- EQ:2 -- EX:6)
*Hover cursor over each card to see name, CL
Message 21 of 36
Senior Contributor

Re: Credit Card Management...So many cards...So many limits


@Aim_High wrote:


 

There is a lot of information people share about their profiles on My Fico.  Unfortunately, one of the downsides of a website like this is that there is also a LOT you won't see about the other users.  Consequently, comparing your profile to theirs can lead to confusion or frustration.  When lenders approve credit lines or APRs, there is much more information in the applicants' financial lives taken into account sometimes beside the most obvious data points that we share here.

 

Excellent comment; don't know how I missed this thread the first time around but I have been very busy recently.  I was reading the forum without logging in but I had to log in to give a kudo to your post.





Message 22 of 36
Community Leader
Super Contributor

Re: Credit Card Management...So many cards...So many limits

Exactly. I love to use the Navy approvals as prime example. You see all these 15, 20, 25k approvals, even on dsmaged profile, yet you rarely see the poster add their income to their dp. Those limits usually arent given to someone with low income and then people assume its their score or some other factor that led to such big limits. Regardless what many may say, income is huge factor in lots of approvals, way more thsn score imho.
#ChaseCreditCardHobby Enthusiast
2022
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Message 23 of 36
Community Leader
Senior Contributor

Re: Credit Card Management...So many cards...So many limits

Agreed. Score is a reasonable estimate for how well you’ve managed what you have. Income goes a long way toward determining how MUCH you can have.


Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | IT Cash | IT Chrome | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Overstock | Kohl’s

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
(Lol so much for that grand plan...)
Message 24 of 36
Established Contributor

Re: Credit Card Management...So many cards...So many limits


@BrutalBodyShots wrote:

@wasCB14 wrote:


Expenses can be lumpy for some people. Just because someone doesn't spend $25k every month doesn't mean they won't occasionally spend that much.

 


I don't disagree with that, but even with the occasional big spend cycle (which would likely be limited to a card or two, not 10+) when you're talking $30k+ limits it's still pretty silly.  The smarter system and the way it should work IMO is that when one of those times comes someone requests a CLI since they actually "need" it.  Think about the number of CLIs granted that aren't needed relative to those that actually are.  If the not needed ones went away (or were dramatically reduced) it would free up far more dollars for the smaller percentage of those that did actually need them.


Card companies know by extending large limits to low-risk customers make them feel big and important, and in return, may use their card more. I've never heard of someone who averages $25K per CL, open a new card ,get a CL of 2K, and be happy and use the card in every situation they can. Instead, they'll be insulted,  won't use the card, and maybe even close it.

(FORMERLY rsmy1234)

Scores:
    Experian FICO Score 8 = 845
    TransUnion = 839
    Equifax = 839

Cards (hover over for CL & Rate):
Message 25 of 36
Super Contributor

Re: Credit Card Management...So many cards...So many limits


@CardNut wrote:


Card companies know by extending large limits to low-risk customers make them feel big and important, and in return, may use their card more.


While that may be true on occasion, in no way do I think that scenario of possibly using a card a little more and generating some additional swipe fees outweighs the risk of someone encountering a life crisis that causes them to max out/default a high limit card that they never use.

Message 26 of 36
Established Contributor

Re: Credit Card Management...So many cards...So many limits


@BrutalBodyShots wrote:

@CardNut wrote:


Card companies know by extending large limits to low-risk customers make them feel big and important, and in return, may use their card more.


While that may be true on occasion, in no way do I think that scenario of possibly using a card a little more and generating some additional swipe fees outweighs the risk of someone encountering a life crisis that causes them to max out/default a high limit card that they never use.


Depends on credit history. If you have a long history and have NEVER paid late, you are low risk.

(FORMERLY rsmy1234)

Scores:
    Experian FICO Score 8 = 845
    TransUnion = 839
    Equifax = 839

Cards (hover over for CL & Rate):
Message 27 of 36
Super Contributor

Re: Credit Card Management...So many cards...So many limits


@CardNut wrote:


Depends on credit history. If you have a long history and have NEVER paid late, you are low risk.


Right, but it's low risk with little to no reward.  Everyone that is late the first time was never late before, right?  There's a first time for everything.  And, all it takes is 1 person to default on a high balance and that will eat up the possible slight increase from tiny swipe fees from probably a hundred other people.  You're also talking about people that actually use their card more due to getting a monster limit, which IMO is a very small portion of the whole.  I personally don't think it impacts spend much at all, unless the limit is so low to begin with that it's the constraint to spend, which is not the case of course when we're talking a high [considerably unused] CL.

Message 28 of 36
Established Contributor

Re: Credit Card Management...So many cards...So many limits


@BrutalBodyShots wrote:

@CardNut wrote:


Depends on credit history. If you have a long history and have NEVER paid late, you are low risk.


Right, but it's low risk with little to no reward.  Everyone that is late the first time was never late before, right?  There's a first time for everything.  And, all it takes is 1 person to default on a high balance and that will eat up the possible slight increase from tiny swipe fees from probably a hundred other people.  You're also talking about people that actually use their card more due to getting a monster limit, which IMO is a very small portion of the whole.  I personally don't think it impacts spend much at all, unless the limit is so low to begin with that it's the constraint to spend, which is not the case of course when we're talking a high [considerably unused] CL.


It certainly is a risk. It's up to them on what to do with their lines.

(FORMERLY rsmy1234)

Scores:
    Experian FICO Score 8 = 845
    TransUnion = 839
    Equifax = 839

Cards (hover over for CL & Rate):
Message 29 of 36
Contributor

Re: Credit Card Management...So many cards...So many limits

Can’t speak for others but I have never based my card usage on its CL. If the card’s rewards fit my spending I use it. Simple as that.

TBH, if someone is capable of feeling big and important just because of a large CL or feeling insulted because of small CL I would go as far as saying they are focusing on the wrong thing financially if not downright immature.
Message 30 of 36
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