cancel
Showing results for 
Search instead for 
Did you mean: 

Credit card limits..

Carloscda40
Regular Contributor

Credit card limits..

Maybe I'm missing something but how is it that some have say 6 or so credit cards with like 5k limits or more?

Vs say 2 or 3 with like 10k limits?

 

But then it's frowned upon when a person have multiple cards with only 1k limits?

 

Thoughts..

Message 1 of 52
51 REPLIES 51
CreditSweeper
Established Contributor

Re: Credit card limits..

If I'm following you...

 

I wouldn't say it's "frowned upon" to have multiple $1k limit cards. I think it's more of a question of if collecting $1k limit cards actually makes those cards useful for everyday purposes. A $5k or $10k, or $40k card will make spending easier without multiple payments per cycle, will reduce the need to pay before statement cut to keep utilization in check, etc.  

 

But, maybe I'm not following you....

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 2 of 52
Carloscda40
Regular Contributor

Re: Credit card limits..

Ok I see what you're saying...

Message 3 of 52
pizza1
Community Leader
Super Contributor

Re: Credit card limits..


@Carloscda40 wrote:

Maybe I'm missing something but how is it that some have say 6 or so credit cards with like 5k limits or more?

Vs say 2 or 3 with like 10k limits?

 

But then it's frawned upon when a person have multiple cards with only 1k limits?

 

Thoughts..


Are you asking how those people with several high limit cards, how they got them?? Im sorry, Im a little confused as well on what you're actually asking/referring too. 

 

Im assumming you are referring to yourself as the one who has several $1k limit cards?  It's not frowned upon.  A lot of folks here don't understand how the rebuilding process works because they never went through it, and don't understand when rebuilders/new to credit have several low limit cards.  Sometimes you have to have several $1k CC's in order to reach those goals of higher limit cards later down the road. 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 4 of 52
Carloscda40
Regular Contributor

Re: Credit card limits..

Yes I was asking about those who have a number of cards with high limits. On here I've seen people who list like 10 crads each having high limits. How are they even able to do that with scores in the 700's, is it even nessary?

 

And I see your point about those with mulitiple 500-1k cards.

 

Apoloigies for the goofy question I'm new to the rebuild phase, just trying to understand more.

Message 5 of 52
pizza1
Community Leader
Super Contributor

Re: Credit card limits..


@Carloscda40 wrote:

Yes I was asking about those who have a number of cards with high limits. On here I've seen people who list like 10 crads each having high limits. How are they even able to do that with scores in the 700's, is it even nessary? Well, necessary is a relative term, and too some people, yes, its necessary, lol.  Its very easy and obtainable to get higher limit cards with scores in the 700's.  It also depends a lot of the persons overall credit profile. If a person has a higher limit card, and applies for another card, chances are the SL on the new card will be the same or higher too in certain circumstances. Also, some of those folks with high limit cards obtained those limits over time with CLI's. 

 

And I see your point about those with mulitiple 500-1k cards. Smiley Happy

 

Apoloigies for the goofy question I'm new to the rebuild phase, just trying to understand more.  No apologies needed! A lot of us , including me were in the same boat you're now at one point. If you want help increasing your limits on your current cards, and rebuilding, we're glad to help you so you can obtain those higher limits too! 


 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 6 of 52
Balls
Member

Re: Credit card limits..

I am guilty of having multiple +10k cards. Do I need all that credit? Nope! Does it come in handy when I have a large purchase? Yes, yes it does. The rewards and minor hit on ultilization are fantastic.

 

AOD VS 3%
Amazon Prime 5%
USBank Cash +
PenFed 5% Gas
Message 7 of 52
Saeren
Mega Contributor

Re: Credit card limits..

The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here. 





Message 8 of 52
ImTheDevil
Community Leader
Super Contributor

Re: Credit card limits..

Also keep in mind that no one here CL-shames others. For many here, $1000 cards are a pain to manage with their spend. There are members spending $50,000 per month and those cards are a nonstarter for them. Others have very low spending and a couple $1000 cards are enough. Everyone's needs are different.



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | FNBO Prime Visa | FNBO Evergreen | PenFed PCR | Navy cashRewards | Navy Platinum | Apple | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





Message 9 of 52
Birdman7
Super Contributor

Re: Credit card limits..


@Saeren wrote:

The problem with a bunch of low limit cards is it drags down your average credit limit and some people believe that UW can use that to give you more lower limit cards. Also low limit cards tend to be harder to grow either because of policies like a maximum 3X CLI or because the lower limit is indicative of a borderline approval and thus there is need for the relationship to grow first. Most of us don't have a problem with $5K limits because they're still usable and don't drag down the average too much, not to mention not all of us are six figure earners here. 


@Saeren not a lot of people talk about average CL. I do believe it can influence future CLs.

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 10 of 52
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.