How does Barclays decide?

[Anonymous]

I was recently approved for there Cash Forward card. It was a 3k limit. I received it today. Now my question, everywhere I look it says you need excellent credit. I'm at 662 on TU. Does Barclay have a predetermined number set for how much credit they'll give you?  Does it matter what card you apply for?  I also have there rewards MasterCard with a 1500 cl. It's low utl. Around 8%. It's a little over a year old.  Or was I just lucky when I applied? 

[Anonymous]

I couldn't say.  They have me puzzled too.  I can say my last Barclay card, the Ring, was the largest sl I have received from them.  I'm thinking it's my history with them along with rising fico scores.  I do see all of those excellent or good/excellent cc's.  They really don't make any sense.

[AAstra]

Barclay's doesn't appear to follow any rhyme or reason from what I've read. Further, I've experienced a family member being approved for a larger likmit than I have and with scores in the high 500s at best. Forever stumped...

[Anonymous]

Chicken bones?  Astrology? Maybe they take the last few digits of your phone number, subtract it from their closing value on the London Stock Exchange, and multiply that by the number of Knighthoods handed out that day, and then divide by Pi?

[surferchris]

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@Anonymous wrote:

Chicken bones?  Astrology? Maybe they take the last few digits of your phone number, subtract it from their closing value on the London Stock Exchange, and multiply that by the number of Knighthoods handed out that day, and then divide by Pi?

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LOL

[B335is]

I think with any lender including Barclays they look at the big picture. If you have a boatload of inquiries and high debt/utilization they tend to scrutinize apps more heavily.

I'm assuming Creditkarma is what is telling you excellent credit is required? If so, take their guidance with a grain of salt. They recently instantly approved me for their Hawaiian Airlines card with over 20 inquiries and a couple cards over 50% utilization. I haven't even looked at what type of credit Creditkarma views that card but there's so many factors every lender takes into account with applicants.

[Anonymous]

This is just my guess. They would evaulate how you spend on your current credit cards and either match or beat your most used card just a bit. I'm sure all credit card companies are competing for your loyalty. The limit they give you shouldn't be much different than your current cards.

[takeshi74]

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@Anonymous wrote:

I'm at 662 on TU. Does Barclay have a predetermined number set for how much credit they'll give you? 

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Every credit product has underwriting criteria.  Your credit profile and income are comapred to that criteria to detemine what you qualify for.  It's not just about score alone.

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@Anonymous wrote:

Now my question, everywhere I look it says you need excellent credit.

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Always consider your sources.  Where are you looking?  Do they have access to the specifics of the creditor's underwriting criteira or are they just speculating -- even if the speculation is basd on correlation?  Remember that correlation is not causation so don't conflate the two.

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@Anonymous wrote:

Or was I just lucky when I applied? 

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It's not about luck.  It's all about risk assessment.  Your report is how they assess potential risk.

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@Anonymous wrote:

This is just my guess. They would evaulate how you spend on your current credit cards and either match or beat your most used card just a bit. 

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That's not how it works.  I've received a number of $5K starting limits.  At the time I had multiple cards at $25K and higher.  Again, each creditor determines what one qualifies for based primarily on credit profile and income.  It is not just about score.  It is not just about limits.  Creditors do not simply match limits or rely solely on limits.  Limits factor into Revolving Utilization.  Revolving Utilization factors into Amounts Owed.  Amounts Owed is just one of a number of FICO scoring factors:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

...and FICO score is just one consideration for creditors that use a FICO in their decision.  One's entire credit profile matters in these decisions, not just score.

In my specific situation, recent activity (new accounts & credit seeking activity) constrainted the starting limits.  As those new accounts and activity ages off, those low (for me) starting limits grew quickly.

[Anonymous]

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@Anonymous wrote:

This is just my guess. They would evaulate how you spend on your current credit cards and either match or beat your most used card just a bit. I'm sure all credit card companies are competing for your loyalty. The limit they give you shouldn't be much different than your current cards.

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issuers won't really know the "most used card" if people pay multiple times per cycle and especially before statement cut.   But also the issuer's rules would have to take precedence, Bank X giving a huge CL won't make bank Y give a similar one if the risk profile looks wrong to Y  (maybe X gave the CL when things were much better)

[Anonymous]

No right here above on card recommendations.