I've seen a few posts talk about SLs and how waiting can help you get a better SL. One trend I noticed when reviewing my recent app spree, is that with banks I have an open account (CC or other), my SLs were $20-25k, whereas with banks I don't have an open account (although I may have a closed account), my SLs were $10-15k. Is there anything I can read into this about how banks are viewing me or their internal algorithms?
When you're "new" with a particular lender you might start off lower than you would think. e.g. WF approved me for $7500 whereas Chase (existing) when I apped for another CC started at 25K... but, on the other hand Uber was approved at 11K and a quick call they bumped it to 25K w/o batting an eye. Regions on the other hand w/ no relationship started at 21K on approval.
It varies by UW guidelines of course besides existing relationship or not. There's no set rule on where a bank will start you off at if you don't want to call and haggle with them after the automated approval the computer gives you.
Depends on how bad you want it. Usually a same day call will mitigate the issue of additional pulls as they'll just be combined in most cases. If it's something that's totally out of whack like a 1K approval when your next nearest is 10K then it's worthwhile to explore. USB did that to me with a denial for INQ's, called them for a manual review and got a 1K and called them again and got them to 10K on 2 cards for 1 HP.
If you're willing to put in the small amount effort it pays dividends sometimes.
I'm generally cynical about trying to interpret SLs.
Maybe a bank keeps a SL low because they want you to be able to get a quick approval if you decide you want a second card from them.
Maybe a credit report had a lot of little balances that hurt someone's score temporarily.
For some people, income can fluctuate from one year to another.
If you're an existing customer at a bank, new CLs may push against an internal limit.
Maybe an issuer sees a lot of other new accounts and is concerned about the risk of bust-out fraud.
The macroeconomic climate can affect lender appetite for risk.
So much can potentially affect a SL, but unless you talk to someone in underwriting it can be hard to know the reasons - if they will even say.