Why Your Credit Card Limits Are Low

[Anonymous]

Well... the OP certainly started his first day posting with a bang.

[Anonymous]

I have over 50 personal cards. not including business card & corporate cards and the only cards are below 10k for me is store cards and secured that never graduated but I hold it cause it has the longest history. What im saying is that if you you have over 10 cards and most of them are below 10k don't apply for more card until 8 of them have a credit limit of 10k..........as I said in my post it takes several years to achieve this........oh and you want higher credit limit you will have to dive into those large annual fees........but who can give out free money just to be a card holder.........

yes a lot of factors does play a role........you salary will cap you also.......if you only make 50K it usually 5 times your salary that they will allow a consumer to have, but that could have change.......

most people get cards just to be getting them ........if you have 37 cards and not paying over 5K for annual fees, then you are looking for their low tier cards and not their best cards............

system is not flawed........system is perfect actually.......get 2 card with a 10k limit.......if you apply for a card and get 5k.......then don't apply for another card, build that card limit to 10K. while you building that limit to 10K the 2 cards that you already have at 10K be building that limit also.........

so what is happening is you building a long history while increasing your limits at the same time.........so it took two years to build that card to 10K.........better report when you apply for a new card......no new accounts........keep your dti low.........and all of your cards will have age 2 years..........now apply for 1 more card. this time limit might be 7.5k..........build that to 10K while increasing your other cards along the way........think of it as a debt snow ball effect.........

don't apply for 4 cards with a 6 months and expect all of their limits to be 10K.......you can do this and you will be approve, but you will have to build all 4 cards to 10K before you apply for another card........thats why I say it takes several years..........

[Anonymous]

The OP no doubt has this all figured out!

Seriously, though, these blanket statement type posts are never going to apply to ever profile.

[Anonymous]

I don't have it all figure out......what I'm saying is this. if you have a capital quickone and your credit limit is 2K......they will cap you based on your usage and how you pay them. now the model will change if you have lets say amex blue, everyday, sky miles.....you use them more than your capital one. as a matter of fact. you sock drawer the capital one. and uses your amex cards for two years.......and no usage for 2 years on your capital one. do you believe you will get a credit limit increase with Capone? or would you take your chance on your relationship with amex since you have been using their card for 2 years.

thats like walking into a bank and asking for 25K loan with a bank you never done business and you never have previous loans with any other institutions, if you have a mortgage, car loan, personal loan, with any company your success rate is higher of being approves with banks you already had did business with in the past.......and thats goes with credit card too.

my statement is not blanket...... what im saying is it takes time to build a relationship with a bank. get one card build credit limit up, apply for another card with the same issuer of your previous card build that card and the previous card you already have.

So in layman term, build your history with one bank at a time.......before going to several different banks.........it's really easy.....to understand.....would you loan money to friend that always paid you back no matter what or would you loan money to a friend who who doesn't pay anybody back......the friend that pay you pack.....make you more comfortable loaning them money because that friend pays his debt.......same method banks uses

[K-in-Boston]

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@Anonymouswrote:

thats like walking into a bank and asking for 25K loan with a bank you never done business and you never have previous loans with any other institutions, if you have a mortgage, car loan, personal loan, with any company your success rate is higher of being approves with banks you already had did business with in the past.......and thats goes with credit card too.

That's why we have credit reports and credit scores.

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@Anonymouswrote:

my statement is not blanket...... what im saying is it takes time to build a relationship with a bank. get one card build credit limit up, apply for another card with the same issuer of your previous card build that card and the previous card you already have.

So in layman term, build your history with one bank at a time.......before going to several different banks.........it's really easy.....to understand.....would you loan money to friend that always paid you back no matter what or would you loan money to a friend who who doesn't pay anybody back......the friend that pay you pack.....make you more comfortable loaning them money because that friend pays his debt.......same method banks uses

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I've had banks give me $20k+ starting lines with no previous relationship and I've had banks give me low $5k starting lines with a long-established relationship.  You really lost me with the last part, though.  That's not really describing being rewarded by a bank for your relationship over time with them; that's just maintaining positive credit history which along with the ability to repay is most of what lenders are looking for.

[Anonymous]

@K-in-Boston

you are correct, but I can certain mostly like guarantee that it took you a while to obtain that credit report of yours. when they gave you 5K was that your first card or do you have several cards with that same issuer.......that would be my question to you

[Anonymous]

My average was somewhere between $7K and $8K when Chase approved me for $15.7K.

Now your formula is sometimes used in business credit. You don't want to be the highest, nor the lowest. Somewhere in between to build a relationship.

[Anonymous]

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@Remedioswrote:
Is there a secret decoder ring that goes with this?

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Tell.me.more!

[Anonymous]

Again, OP, your statements are of the blanket variety and cannot be applied to every situation, as evidenced by the replies you're getting from members above that aren't in line with what you're saying.

[expatCanuck]

One more data point -- in December, I had an average limit of 10K/card, over 4 cards.

Chase issued a CSP to me with a limit of 19 (which I subsequently reduced, but that's another story).