Low limit credit card prevents you from getting a higher limit?

[DigitalArk]

Is it true that having a low limit credit card in your reports will adversely impact your ability to get approved for credit in the future for higher amounts (i.e. car loan, mortgage, or a higher limit credit card)?

[RushXTC]

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@DigitalArk wrote:

Is it true that having a low limit credit card in your reports will adversely impact your ability to get approved for credit in the future for higher amounts (i.e. car loan, mortgage, or a higher limit credit card)?

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From personal experience, No.

I had multiple accounts that were $200-$500 limits, When I was approved for :

Citi: $1,000

Amazon: $1,700

NewEgg Preferred : $2,000

Bloomingdales: $1,500

Just use the low limits wisely. The UTL jumps up fast because of that same fact that it's a low limit... $100 out of $200 limit is already 50%... and $100 isn't a hard to reach. Pay it off on time and after a couple of months, Request CLI and it will no longer be a low limit card !

[supervelous]

my recent experience says otherwise.  I had the following limits recently:

Cap 1:  $300

Chase Slate: $300

Chase:  $250

BOA: $500

Amazon: $700

Express Store Card: $1,730

Within a few days span I apped for Chase Freedom, Chase Sapphire Preferred, Discover It, and American Express BCP and was instant approved at the following limits:

Freedom: $5,000 Visa Sig

CSP: $6,200 Visa Sig

Discover: $8,500

AMEX: $2,000

3 different issuers, all much higher limits than my old cards, with none knowing about the others.

[red259]

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@DigitalArk wrote:

Is it true that having a low limit credit card in your reports will adversely impact your ability to get approved for credit in the future for higher amounts (i.e. car loan, mortgage, or a higher limit credit card)?

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Nope. Everyone starts somewhere and what matters is what you did with the low limits that were given. 

[09Lexie]

Not at all.

[DigitalArk]

Good to know. Thanks!

Now, how about credit limit decreases? If it happens, will it prevent you from getting higher amounts of credit in the future?

[red259]

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@DigitalArk wrote:

Good to know. Thanks!

Now, how about credit limit decreases? If it happens, will it prevent you from getting higher amounts of credit in the future?

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If someone is getting credit line decreases there is probably something else going on that would be impacting the credit lines they would receive. 

[DigitalArk]

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@red259 wrote:

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@DigitalArk wrote:

Good to know. Thanks!

Now, how about credit limit decreases? If it happens, will it prevent you from getting higher amounts of credit in the future?

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If someone is getting credit line decreases there is probably something else going on that would be impacting the credit lines they would receive. 

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I had this discussion with one of my friends who wanted a Visa Siggy from his bank. He moved partial of his other card's limit to open a new account to avoid a HP. 

But then he was concerned about his other card limit decreasing would cost a negative impact on his scores or how lenders looked at his reports. I told him that I did the similar thing by moving partial of my NFCU cashRewards' limit to my goRewards. I did not know the answers to his questions. That's why I brought it up here for you guys, the credit gurus.

[Dustink]

There have been not so reliable reports that having certain (sub-prime) lenders on your reports can be negative.

Never been any issues for simply having low limts as long as they are used wisely.

[Networth]

I have a Macy's card from when I was earning my undergrad back in 07'. Its credit limit it $1,500, where as Amex and Chase have given me limits 3-4x times that so I really don't think low limit cards hurt your chances for applying.