Does having one low limit card vs your others weigh down your profile?

[Anonymous]

When it comes to getting good limits with new approvals, etc.  I know the whole profile is the equation, but how big of a factor is something like this?

[creditguy]

Not in general. Your overall profile and income determines your SL's. As your history with your cards improve and you build bigger CL's you may get larger SL's because of your demonstrated responsibility. It is possible to score good limits and that depends on what you consider good limits with a history of only small limits but in general you have to work your way up to large limits.

[NRB525]

Not at all. It depends on your overall profile.

I have a $1,500 Freedom card, a $1k Diamond Preferred, a $500 PenFed card, and a $500 SDFCU card.

Since May 2015 with all those four in my profile, I got the $30k Venture, EDP at $15k, AK Air at $17k, 2 Citi AA cards, and Citi Hilton with $13k, and a $16k PenFed card. The smaller limit cards are a good way to show responsible use, and usually will result in a larger next card, provided your profile supports the higher CL.

[jamesdwi]

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@Anonymous wrote:

When it comes to getting good limits with new approvals, etc.  I know the whole profile is the equation, but how big of a factor is something like this?

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not at all, i have a $200 target card, and a $750 CapitalOne Quicksilver card,  yet still have gotten approvals of 10k, 15k and 20k. 

its your over all profile and income that makes that impacts the most. 

[JagerBombs89]

I don't think lower limits hold you down.  However, I DO believe that higher limits beget higher limits

[RonM21]

I tend to think the same thing. The higher limits can cause the other lenders fo react at times because essentially they want you to use them and your money.

[Anonymous]

One of the listed reasons on a recent app denial I had stated my credit report showed I had low credit limits. My current highest limit is 25k (AU) and personal is 5k. I'm rebuilding and half my cards are 1k or lower. The other half range from 1.5- 5k, than the AU card. I'm sure if it was only 1 or 2 it wouldn't have been a reason but apparently having multiple low limit cards can indeed hurt.

[takeshi74]

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@Anonymous wrote:

When it comes to getting good limits with new approvals, etc.  I know the whole profile is the equation, but how big of a factor is something like this?

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No, not in the way you're thinking.  Creditors do not simply match limits.  Limits factor into Revovling Utilization.  Revolving Utilizatino factors into Amounts Owed.  Amounts Owed is just one FICO scoring factor.
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

FICO scoring is just one consideration for creditors that use a FICO score.  Your credit profile and income are the priamry considerations in determining the limit that you qualify for.  The limit on one card does play a part in all this but you're putting far too much weight on the on the one limit itself when there are many factors at play.

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@JagerBombs89 wrote:

However, I DO believe that higher limits beget higher limits

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Don't rely on that meme.  Getting a high limit doesn't mean that all subsequent limits will be high.  Again, it's profile and income at time of consideration that matter.  I've had $30K & $25K cards and have received several new cards that started out with $5K limits because of new accounts on my profile.  As those new accounts and my credit seeking activity aged those cards grew but you can't rely solely on limits of existing cards to determine the limit that you'd qualify for on a new card.  Again, limits on your cards are just one consideration among many others.  Don't focus on one while ignoring all the rest.

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@RM21 wrote:
I tend to think the same thing. The higher limits can cause the other lenders fo react at times because essentially they want you to use them and your money.

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Also another flawed meme.

It's all about risk assessment for creditors.  They assess what they think as one's risk of default based on review of one's profile.  It's not just about limits.  It's not just about creditors wanting customers to use their cards.  A creditor that just abritrarily extends credit will not remain in business for long.

[wmweeza]

If it did  I would have dumped my Target card long ago

[Anonymous]

Yes, not true.  I have 44k Venture and just got a Nordstrom's with a 1k limit which is just after I got a 25k limit with Lowe's.  It's because I app'd for a few cards at once so they will start it low until you can prove them wrong.  Just think about what you can turn that limit into.