Limits and Rewards

[FalconSteve]

Do many people find that the best limits aren't found on the cards with the best rewards?

I have a $30k limit on my AmEx (1.5% and redemption min), my wife just got increased to $35k. Citi just increased my 2% card from them to a roughly $11k limit and SoFi's 2% card (no min redemption) is $7k, but BB&T (1%, $25 redemption min) gave my wife and I $11k each when most of our limits were $2500.

It's not a hard and fast rule or anything, but a rough pattern.

[FinStar]

Not in my experience especially for the cards I currently have. I think this is purely subjective and somewhat coincidental to some extent.

[FalconSteve]

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@FinStar wrote:

Not in my experience especially for the cards I currently have. I think this is purely subjective and somewhat coincidental to some extent.

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It wouldn't surprise me, I don't have a ton of data. I am also curious about SL vs eventual CL for 2% cards vs regular cards

[chuckgravy]

I think it mostly has to do with individual credit history (thin files generally getting smaller limits) but one exception might be US Bank. They have some fantastic cards but are known for being incredibly stingy on SLs. It's not uncommon to see approvals for Altitude Go or Cash+ at $500 SL, and when I was approved for the Altitude Reserve I got a $5k SL, the minimum possible Visa Infinite limit. In this case it's clearly an instututional thing, but for other issuers I think it's probably coincidental.

[FalconSteve]

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@chuckgravy wrote:

I think it mostly has to do with individual credit history (thin files generally getting smaller limits) but one exception might be US Bank. They have some fantastic cards but are known for being incredibly stingy on SLs. It's not uncommon to see approvals for Altitude Go or Cash+ at $500 SL, and when I was approved for the Altitude Reserve I got a $5k SL, the minimum possible Visa Infinite limit. In this case it's clearly an instututional thing, but for other issuers I think it's probably coincidental.

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I only have cards (no traditional loans), but not a thin file and AmEx and BB&T (now Truist) seemed to trust me with huge limits relative to more generous rewards at the same time. Coincidence is likely the culprit here. 

[CYBERSAM]

Seems coincidental at best! I can get much higher CL from Verizon CC with very good rewards but I limit myself to 20K max because it is Sync and don't want my other CCs to be canceled with them!

X1 is new but they have very good rewards and almost everyone who has it, is near or top CL that they have received!

[Kforce]

My largest credit lines have been with CU's that have worthless rewards.  The card issuer matters more than which card, however from any issuer they do seem to have cards that are more and less conservative on limits. 

From my experience, lots of time, only moderate card numbers, I agree, it seem like higher limits are given to cards with lower rewards.  I see the same on APR rates, high rewards = higher average APR's.

Yes I know of many exceptions however in general I believe both CL and APR are correlated to rewards.  Maybe not as much with AF card's, they get the money a different way!

[CYBERSAM]

APR certainly is much higher on reward cards vs. basic cards, easy to see that in credit unions!

However if you do get high AF card, the rewards and CL is much higher then your normal credit cards. If you are paying $400+ AF then you better have much higher CL. Still the APR are high even on those cards.

[SouthJamaica]

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@FalconSteve wrote:

Do many people find that the best limits aren't found on the cards with the best rewards?

I have a $30k limit on my AmEx (1.5% and redemption min), my wife just got increased to $35k. Citi just increased my 2% card from them to a roughly $11k limit and SoFi's 2% card (no min redemption) is $7k, but BB&T (1%, $25 redemption min) gave my wife and I $11k each when most of our limits were $2500.

It's not a hard and fast rule or anything, but a rough pattern.

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No, I haven't found that at all. Some of my highest starting limits were on cards that had good rewards.