Why have I been given so much credit?

[degs138]

Lol

[Bankrupt2019]

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@Anonymous wrote:

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@degs138 wrote:
I'll never understand FICO scoring.

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You'll never will. Nobody will. Join the club 

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I'm not so sure Mr.Fair or Mr.Isaac understood FICO scoring....

[vayub4]

wow at just 19?!!!!! It's so good to have connections!!! 800 credit scores and over $200k in annual salary, that's almost a perfect life right there!!!!

[joeaseer]

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@Anonymous wrote:

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. 

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Hello Vinny,

I started with no credit history around 14 months ago and got a $500 Chase Freedom card. From then until now my overall credit limit has gone up $32,000 and I only have 3 credit cards. Also my income isn't even 30% of your income; it's directly from picking the correct credit cards and PIF every month. If you pick the right credit cards that allow easy CLI's, PIF and spend 1,000+ a month you'll do well.

Having a huge credit limit isn't that great though, only real perk is you know it won't max out easy. Which means if your card is declined while out for dinner, you know there's something really wrong. From your story I’ve realized it’s a great idea to keep at least 25% of our annual incomes in savings. I say that because you were worried about owing 12.5% of your annual income in credit card debt.

Credit card companies will trust in you, if you spend a lot monthly and don’t make them concerned about you.

[Erusidhion]

    I know a few people who work 9-10/hour 40 hours a week and they have total credit limits of $100k+. Income plays a role sure but your history plays a huge role. Not only that, if you've never burned that bank before in your life; they've been taking huge risks in investing in a lot of people over the least 2-3 years. But that's probably because all those that went bankrupt in the 2008/2009 are crawling out of the aftermath in 2015/2016. Depending on the election this year; although it may not even play a huge role in what banks do, it's possible you may see lending opening up even more to those that are responsible.

    I must admit that someone even making minimum wage and they work 40 hours a week; having a huge credit limit lifts a lot of burden off of someone. Emergencies happen and sometimes someone may just want to take a week to themselves and pay it off with a 0% apr card or a low interest credit union card over time. Interest of course is everyone's enemy but sometimes paying the interest let's you live a little above your means if you're a responsible borrower.

    I didn't care about credit until February of 2014. Cleaned my reports and in 24 months I went from a $0 credit limit all the way up to a current limit of $110,000. In my whole life I would have never imagined that I could just walk into a store and buy anything I want (not that I WILL!). I've matured and become a hell of a lot more responsible. Hell, I could probably go buy a brand new vehicle on credit with a 0% balance transfer offer to my bank account... but I won't.

    Stick with it and be responsible and you will have 0 problems in life once you straighten your credit out. It really is too bad that student debt criplles a lot of people more than 7-10 years though; for those people, I really feel for and hope that there's some kind of government intervention to provide them some relief. Also those with any kind of medical debt. It's a damn tragedy in the year 2016.

    We've all come a long ways. I for one will never go back down that road not caring about credit.

[takeshi74]

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@Anonymous wrote:

Why have I been given so much credit?

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tl;dr answer: Because your credit profile and income qualified for it.

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@Anonymous wrote:

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.  

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Don't fall into that trap.  Pay every statement balance in full.  Make a budget and stick to it.  Don't spend what you don't have.  Your card limits are irrelevant for your budget.  Available credit is not income.

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@Anonymous wrote:

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?

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You'd be in trouble and many other have certainly run into the same problem even if they didn't have limits similar to your own.  That's why many people are here in the first place.  Regardless of limits, one has to stick to budget.

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@Anonymous wrote:

Curious to hear if this is because I look great on paper or because CC companies just don't care.  

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They do care.  Slip up enough and you'll see exactly how much they care.  Consider yourself lucky and learn from your experience.

[BallBounces]

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@Anonymous wrote:

When people post here with limits in the high 100k's, they have income well into the millions. It is decent when compared with the credit I have been given. If I made $30k/year I would not have CC's with high limits. Period. Decent in terms of my limit, but just for the record, its top 5%. 

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This is where you are wrong.  There are plenty of people here at the fora, with 5 figure incomes and credit lines 5 and 6 times their annual income (above $200,000).  Credit limits are dependent upon several factors.  It is certainly OK to ask why your limits are what they are, but be careful when assuming things that plainly are not true.

[Anonymous]

Just wanted to thank the OP for such an interesting read and support the fact that he or she can indeed get to 800 without any sort of installment loan present on  reports. BTW, I don't remember OP saying he only had credit cards but maybe I missed it. While I'm not quit at 800 on my fico 8, the scores I have listed in my sig were from a few weeks ago when I had roughly 4 percent in balance on a 0 percent card. I hit 796 on my TU beore I apped for a mortgage. Although I haven't pulled recently, I'm fairly certain I've hit dang close on the reports that are completly clean when I paid my blance down to 1 % for the mortgage app and I don't have the the 25 and 30 years of AU history OP has. 

[icyhot]

I've always said an 18 year fresh out of high school can build significant wealth if they put off going to college and went into real estate first. It can be a very lucrative market.

[Anonymous]

CAN I BE YOUR ASSISTANT ??? lol jk

( ... no very serious) 

.... I'm cute by the way.