@Anonymous wrote:
@Anonymous wrote:It is possible (as a previous commenter observed) that the lender was using a scoring model other than FICO. The biggest competitor to FICO is Vantage, and Vantage does indeed care about the size of credit limits, in and of themselves and apart from utilization.
Interesting... I guess that explains why my Credit Karma scores have been lower since I CLD'd all my cards back in January. Well, I paid off a car loan too.
But as for the OP, I've never heard of a denial because of no limits over a certain amount before. Must have been a specific lender using a specific scoring model or algorithm... I would be in trouble if I applied for a loan from them. In the past I've gotten car loans and even a mortgage when I only had a $500 limit card, though I had higher limit cards I had closed that were still reporting back then.
Signature Visas would be an example of cards that would deny you if you couldn't qualify for a high enough SL. If they have a lower tier version, you'd get that, but if all they offered was signature, like the NFCU Flagship, you can't be approved unless you can qualify for that $5k SL. And there are plenty of people here that were denied a Flagship, but turned around and got the Amex. And since lenders tend to give limits comparable to your existing lines, it would explain it.
@Anonymous wrote:The 5K SL on Visa Signature cards is not set in stone. My Chase Amazon card is a Visa Signature but the limit is 4.1K.
And you can get a Chase Amazon Signature with $500 limit, which is why I specifically used the Flagship in my example as you must be able to get a $5k SL to get one.