Okay so here is my question..
Does your credit limit correspond to your income?!
For example.. are you more likely to have a 30k limit if you make 100k+ yearly.. or is it just as likely someone who makes 50-60k yearly could get such a limit? and what about the people who only make 30k or less? do banks limit their exposure bc they see it would take them forever to pay it back or let them have it bc it puts more interest in their pockets when consumers cannot pif monthly?
I would like for anyone who doesn't mind taking a moment to post what your CC limits are and your annual income when you were approved for that amount.
My mother has a 15k discover limit and she makes maybe 60k before taxes are taken out... what about you guys who have 100k+ in available credit??
Thanks ahead of time for your input and for growing our knowledge daily.
Honestly with most lenders, income isn’t a huge factor. It plays a role of course, but responsible (and frequent) use is probably the most important determining factor. There are people who make 150k and then get new cards with only 4k limits. And then there’s the other side—I just saw an approval thread today where someone got almost 70% of his income as an SL. Lenders look at waaaay more than just what you make.
Starting limits on credit cards take into consideration more than just income. Your score and overall profile are very important. It varies for each lender. Some lenders seem to care more about overall profile than they do your income and for other lenders having a large income helps, but you still need a good profile to get the cards. I have almost $190K in trade lines (5 cards) and report $135K in income. My overall profile is pretty solid though...over 820 score on all bureaus and a have a semi-thick profile (mortgage, installment loan, and credit cards).
In my opinion:
1st = Issuing Bank or CU
2nd = Profile & History
3rd = Spend
Last = Income
When I was young had ok-scores, soso-income (50k), and short history profile I received a $35,000 starting limit on a card from local CU
It had no rewards, so I gave it little use. Few dollars on it every couple of months. A year later they raised the CL to $45,000.
Still have the card but I had them lower the limit to 25k, and lock increases.
20+ years later, scores at 845-850, income(200k), long perfect history, and I got a US-Bank Cash+ with $7,500 starting.
My real life experiences point to the issuer as most important as far as CL's.
I have found all of my cards to grow after a few years.
Cards with low spend grow slower than cards I use a lot.
I now cap and lock at 20k, so have no high CL or long term growth data points.
Income can be a factor, but first and foremost is, is the cardholder paying on time? What is the risk the bank has a bad customer who defaults on the debt?
For initial limits, that payment history is the most important factor. As limits increase, income can become more of a factor, but only as long as payments continue to be made on time, according to the card agreement terms.