To be honest, one should never "expect" a certain limit, or even an approval for that matter. Nothing in credit is ever guaranteed, no matter how good your scores, profile, or income may be. It's always best to temper expectations.
@Crowhelm, I disagree with your suggestion to close cards just because the limit they approve you for isn't to your liking. This could result in a multitude of closed, "low-limit" account showing on your reports. IF other lenders do look at your other limits (which, yes, they *may,* but not necessarily all the time. And even if they do, it may not impact their decision either way), then by the same token they can also look at all of these closed accounts and wonder what happened. With very few exceptions, most accounts can be grown over time with responsible usage and payments.
@Anonymous wrote:
@Crowhelm wrote:I am not trying to hide anything but rather am trying to point out to people that they should go where they are appreciated and not obsess to get one card or another just because it is from the bank they think is a big deal even if that bank treats them like, well you know what. The same would go for a CU. Meaning, don't be afraid to close a card if the approval is a joke. Because other banks and CU's do look at your other credit limits.
Really the only advantage to closing a recently opened credit card (due to too low CL or some other reason) is psychological, to feel you have dealt with some "disrespect" Certainly it has no impact on the FI (so you don't teach them to mend their ways), and having taken the HP and new account hit, you also zero out the countering advantage of a (albeit small) increase in total credit limit. Plus you cannot use the card for whatever reason you applied (in this case 5x on various categories) IF other institutions are looking at your CLs, the closed one will still appear on the credit report for a number of years, reporting the disliked credit limit.
If that would give them the hint that my wife nor I will stand for an unusable credit limit, especially on a cashback card which you want to max out as well as you can, then that would be fabulous. We told Affinity FCU that we are applying because of my wife's unusable Freedom Flex credit limit and we were going to close it after approval on their card. Our double approval for very good credit limits would show that our approach works, no? Once again, we just need to agree to disagree. Banks certainly prefer your approach I'll give you that but I never followed the crowd and in most cases, it has served me well. I just refuse to put my life, my goals on hold just because a bank is not ready to give me what I am looking for especially if another one will. A credit card is not a gift from banks or CU's. It is one of the ways they make money. They are selling a product to me the customer. If I like what they offer I will take it and keep doing business with them, if not I am out. Something most people would do with everything else but a credit card is somehow different?
@OmarGB9 wrote:To be honest, one should never "expect" a certain limit, or even an approval for that matter. Nothing in credit is ever guaranteed, no matter how good your scores, profile, or income may be. It's always best to temper expectations.
@Crowhelm, I disagree with your suggestion to close cards just because the limit they approve you for isn't to your liking. This could result in a multitude of closed, "low-limit" account showing on your reports. IF other lenders do look at your other limits (which, yes, they *may,* but not necessarily all the time. And even if they do, it may not impact their decision either way), then by the same token they can also look at all of these closed accounts and wonder what happened. With very few exceptions, most accounts can be grown over time with responsible usage and payments.
@OmarGB9 Well, just to be clear, If your credit report doesn't back up what you want of course you should keep it and try to grow it. But our credit reports do back up what we expect is reasonable. I have no illusion that somehow Chase will change its ways due to our rejection because it would require millions of people like us to make them look at this. We just won't waste our time with Chase anymore. Plenty of great lenders out there who love to extend the limits we are looking for. And this is the kicker. Chase gave my wife a 25% interest rate along with that ridiculous starter/bad credit limit. Not only did Affinity FCU give her over 5 times the credit limit but she also got the lowest interest rate on that card @ 12.5%. Sorry but we also have to agree to disagree. However, I want to stress I love hearing different opinions. Even if it won't change my mind on this one it has already on other issues.
Totally understand. Got carried away with explaining things to people why I feel about things the way I do.
Hi @Annabe. I'm not entirely sure the reasons for the lower than expected limits, but I will say this: Citi and Amex can be generous when it comes to credit limit increases. My Amex BCP started at $5k (which initially was a disappointment), and I managed to get it to its current $30k in less than a year ($5k > $15k > $30k)! Citi gives me an increase whenever I'm eligible and I ask! Use the cards well and they may reward you accordingly. Of course, I can only speak about my experience, but results may vary. Just learn when you're next eligible and try to grow them. I have yet to get a hard pull from either for a CLI either.
