How to get a very high credit on low income but high net worth

[Anonymous]

Hi all,

I’m new to the forum, so I apologize if this question was asked, but I looked all over Google and couldn’t find an answer to my question.

I’m a relatively young guy, so my credit history isn’t that long, and my income is okay, but nothing crazy (less than $100k/year).

I buy sports tickets for friends and family once a year that I’m reimbursed for by them. I’m buying for more people every year, so my expenses when I buy these can get quite high (close to $50k). I buy these for other people, because I’m able to get a better price from the broker by buying more tickets at once.

Every year, it gets harder and harder for me to make the purchase, because I’m getting closer to my credit limit.

My assets are pretty high, because I got lucky by buying bitcoins several years ago.

It seems like credit card companies base your credit limit based on income, but not on your assets. Is it possible for me to disclose my assets to get a high credit limit? I’ve asked this to the credit card company like 5 different times, and they said no, but shouldn’t assets be super important to determine credit???

Ideally, I’d like a credit limit between $50-100k, so I don’t need to worry about my credit limit every year.

Thank you!

[K-in-Boston]

With certain lenders, assets can be not only added but encouraged. Amex will usually have a field for assets on all applications and CLI request forms.

Is there a particular bank you have the majority of your holdings with? Are you a Chase Private Client, Bank of American Honors, etc.?

[Anonymous]

Thank you for your quick response. I honestly barely keep any money in my bank. I keep nearly 100% in my investment portfolio, and the small chunk of money I do keep in a bank is in a local credit union.

I’d like to have the credit limit increase on my capital one savor card. Since these are sports tickets, I get 4% cash back. Do you know if I can disclose assets to them? (Several workers said no, but again I don’t know if they are just blowing me off)

I’m just wondering but does having your home paid off help you to get a higher credit, since I’d have more home equity? I’m planning to pay 100% of my mortgage down next year, since I have a lot of cash sitting in my investment account.

[AverageJoesCredit]

I dont know, i think actual reporting income is very important to lenders even if one has lots of assets.

[K-in-Boston]

Sorry by holdings I meant more general than simply checking/savings/money market. If your portfolio is with Schwab, Goldman Sachs, Merrill Lynch/Edge, etc. you may be able to get a favorable relationship with American Express or Bank of America is where I was going with that.

I don’t recall Capital One ever asking for assets. If cash back is most important to you, you may not find better than 4%. If they’re coding as entertainment purchases, Citi Premier has a 2x category for that which would be 2.5% back toward travel or possibly much more than what you are getting when transferring to a travel partner for business class travel.

As far as paying off the mortgage, it’ll lower your DTI which it doesn’t sound like is really an issue. For credit card lending, when a lender asks for assets they want fair liquidity not real estate. Not having any open loans at all can actually hurt your credit scores, while having a substantially paid down one helps quite a bit.

[K-in-Boston]

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@AverageJoesCredit wrote:
I dont know, i think actual reporting income is very important to lenders even if one has lots of assets.

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It really depends on the lender.  If someone has a reported income of $20,000 a year but has $20 MM in assets, there are certain lenders that will of course understand this, and set limits accordingly.  On the other hand there will be those who aren't equipped to handle a fairly uncommon situation like this and will just give somebody say a $5,000 limit because of their low income.

[AverageJoesCredit]

Ok K, ill take 20million please

[Anonymous]

Amex BBP gives 2x on up to 50k spending per year. They are also generous in limit and clis. That is close to 4% as I can think of, all without AF. Apply and talk to them may get you somewhere.

[Anonymous]

If you are open to business cards, most business cards will give you a better credit limit.

I think K-in-Boston said it best. Whoever you have your investments with is probably gonna give you a card knowing that. If you are a Platinum Preferred member with BOA and Merrill, they wouldn’t hesitate. Same with Schwab for the Plat.

Have you thought of maybe applying for another Savor Card? I don’t know data points on this one but I’m sure if you spend handsomely with Cap1, even though they have internal limits on your single card, doesn’t necessarily mean the same for another Savor. But I would see if anyone else chimes in on this.

[Anonymous]

Since CL is dependant upon a person's profile, it's tough to get very high without experience. That said, after few years of high usage you'd think Cap1 would have adjusted your limit to accomodate the spend. 

I also wouldn't call less that $100K low income by any means, several people with lower than that have rather high CL's on CC's. 

Considering this isn't actually a revenue stream, just people paying you back. It technically can't be counted on as guaranteed. 

I'm thinking that maybe a LOC might suit your needs better, as opposed to trying to get a CC with $50+K CL.

You may have to switch from using Cap1and go for a Charge Card, or split the spend between two cards.