When do The Banks step in?

Anonymous · ‎04-06-2017

Out of curiosity, when do the major lenders(or any bank you know of) typically step in and ask for more documents, do financial reviews, etc.? From reading this forum for the past year or so, it seems like when a credit line reaches a certain level(e.g. 30k), then the Banks kinda kick it up their evaluation a notch. I'm just wondering what each Banks' general thresholds are.

Thanks in advance.

UncleB · ‎04-06-2017

@Anonymous wrote:
Out of curiosity, when do the major lenders(or any bank you know of) typically step in and ask for more documents, do financial reviews, etc.? From reading this forum for the past year or so, it seems like when a credit line reaches a certain level(e.g. 30k), then the Banks kinda kick it up their evaluation a notch. I'm just wondering what each Banks' general thresholds are.

Thanks in advance.

I don't think there's a general or blanket threshold for most lenders; the closest I can think of would be Synchrony... they are known to want pay stubs if you want/need to go past $35k, but if you look hard enough you'll likely find some exceptions there as well.

As for the other 'major' lenders it can really be all-over-the-place. There are people with credit lines of $50k - and much higher - who have never provided any kind of POI, while some people are asked for documents at much lower amounts. Keep in mind that many banks have other ways of estimating your resources and net worth without resorting to invasive POI or tax transcript requests.

TL;DR... from what I've seen it really depends on the customer and their individual credit profile and history with the individual issuer.

Anonymous · ‎04-07-2017

I dont think anything is concrete. If you demonstrate that you use a certain level of your credit limit with a lender and pay it off responsibly, raising it within reason doesn't draw many flags.. but if you're requesting a large limit with a lender you don't have much experience with or they see you've been adding a lot of credit elsewhere all at the same time, they're going to be more cautious. It's a risk thing, and they want to limit it. Yes, GENERALLY its about 25-30k.. but its really profile specific.. if you have 2 cards with under 500 dollar limits, and say you make 100k and want 15k, it might trigger a review.. if you've got 6 new inquiries and 4 new cards on an otherwise clean report it may trigger something too.. on the other end, if you have 4 other cards with 30k limits that are 8 year old tradelines with no late pays and a 10% util, but are consistently running 25k through their card and paying it off, they might trust you enough to go to 50 without batting an eye. Each profile is different, and each lender has a different algorithm to make those decisions.