Before I start I should make it known that I am only 19 years old and will be turning 20 next week. Also, I should add that I have decent income (about $200k this year), but I had no income when I applied for my first card. My credt scores are all in the 800's.
Ok, so when I turned 18 I got my first card, an Amex PRG because I very afraid of being turned down for a CC or, even worse, getting a very low limit. I used this card exclusively for 9 months and spent around 15K on it thoughout that period. I always payed it off by more than the ammount I owed. I even opened a small savings account with Amex (just $5k) to let them know I was a loyal customer.
Fast forward... I applied for my first CC, an Amex Everyday Preffered. I was given a $10K limit right off the bat, which was nice but not what I was hoping for. I realize my age is a major factor in this and I know many people would be grateful for a limit like this. After 61 days, I applied for a 3X increase and received it. Now the limit on this card is $30k.
My next card was a Chase Sapphire Preffered, which came with a $32K limit right off the bat (pretty nice of them). I do bank with Chase and I am a very loyal customer.
After this, I foolishly applied for the Visa Black Card (now MasterCard Luxury Card), and was given a measly $12,500 limit. Besides the fact that this card is a useless hunk of metal, it costs an outrageous $500 a year! I have gotten them to waive the fee for two consecutive years based on my status with them so its basically a free useless hunk of metal, but still.
Ok so this is where I think I went wrong:
My brother swears by his Amex Starwood Preffered card and asked me to apply for one with his refferal. I was shaky because I had just opened two new cards (The Sapphire and Black) and didn't need another. I got approved for $10K, which was odd considering I had spent $60K with amex the year prior.... But I took it and it has been sitting ever since (I did use it enough to get the sign up bonus).
Now that I had quickly accumulated over $80k in credit, I began to spend a litte more than I used to and started getting content with having a balance.
In July 2015, I had reached a point where my business got slow and money was not coming in as fast. My balances started going up. By December, I had close to $20k on my cards. I had not planned for Christmas shopping either. Now I was starting to get scared. My total balances in January 2016 were over $25k. I just paid them all off in full and vowed never to do that again.
Then just last week I went an applied for a Chase Ink Cash for my business, and not surprisingly I was approved for a $35k limit secured by my personal credit. That same day I applied for an Amex Business Platnium, also approved.
My point is, CC companies have given me ample access to credit without a long history for me to prove I can handle it. I know I am responsible and I have plenty of income to pay my cards off, but what if I didn't? Does anyone else have a similar situation? Curious to hear if this is because I look great on paper or because CC companies just don't care.
