cancel
Showing results for 
Search instead for 
Did you mean: 

Other 18-20 year olds have higher CL

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Valued Contributor

Re: Other 18-20 year olds have higher CL


@tydawg wrote:

@mitchblue wrote:

My best advice, don't worry about some huge CL. I don't see why any teenager needs huge credit limit.. I doubt many have the bills at that age.. My rule for me, use CC's on normal spend, Food, House bills, Auto, Medical bills etc.. Bills that teenager's usually don't have so I wonder why an 18 year old would need 50k CL or 100k CL like I've seen posted on here.. That's how many get in trouble..


Those of us at that age that know how to get those sort of credit lines are probably more responsible than the average person haha. 


IIt's not about being young, older people don't use their credit well sometimes either.. It's about less everyday spend. Granted 18 year olds can have bills too but I see no reason a teenager should go for gold right away, so to speak. Most people who have 50k, 80k, 100k etc. CL it took many years to get.. I just hate to see a young person's goal as trying to get 100k CL. Here are some oldie but good adages, "it's not a sprint but a marathon" and "Rome wasn't built in a day." Smiley Wink

Amex Green • Amex BCP • Amex HH (Aspire®) • Barclay Rewards • Chase World of Hyatt • Chase FU • Capital One Quicksilver • Discover it • PENFED Platinum Rewards • Marvel MC • Amazon Store • Kohls Store • CL $109,330 • Car Loan (PENFED) 1.99% PAID

FICO® 8 Scores 805-812 FICO® 9 Equifax 822
Message 31 of 62
Valued Contributor

Re: Other 18-20 year olds have higher CL

First, it's your opinion that young people are more responsible if they get a credit card at the age of 18. Second, you'll find MANY post's on the forum's that won't back that claim.


EQ 778 EXP 782 TU 729
Message 32 of 62
Moderator Emeritus

Re: Other 18-20 year olds have higher CL


@Subexistence wrote:

 

• Young adults are limited in the amount of credit they can receive. Even if a young adult does qualify to receive a credit card by having a means to repay debts, the amount of credit that can be extended is capped. The maximum amount that a young adult, for whom no one else assumes joint liability, can charge on one credit card is limited to the greater of $500 or 20% of the student’s annual gross income in the most recently completed calendar year. In addition, the aggregate limit for all credit cards held by a young adult is 30% of the student’s annual gross income in the most recently completed calendar year.



Does anyone know if this is enforced because I might need to do some serious income/asset  bluffing if that's enforced. I imagine its pretty hard to enforce since card companies might not update other card companies what current limits are at. Also business card which don't report to personal bureaus are another way around this pesky limitation.

 


That's fraud dude; while nobody got prosecuted as near as I can tell for that in the mortgage crisis, it's a flatly dumb thing to do.

 

Credit limits are irrelevant, LN may well be a useless score (it might affect, but it is not the core deterimination of your insurance rate even if you reside in a state which allows it... hell insurance companies could be using a different score entirely for all we know even if they can use your credit data), and Vantage which does like an individual CL somewhere over 22K (between that and 43.5K anyway) I'd suggest that score isn't worth worrying about either.

 

You'll get credit limits over time, probably as soon as you can demonstrate real income post college as you'll have 3-4 years of credit history at that point.  Ain't no rush, ain't no big thing, and ain't worth worrying about.  For a long while I pretty much won the award for least amount of CL when looked at by registration date (and for a few years after that) but some approvals over the last year or so have basically tripled my limits in short order, but has made absolutely zero difference to anything in my life.

 

My suggesting that anyone is wasting their life would definitely be a bunch of hypocrisy, but I'd strongly encourage you to focus on other things.

 




        
Message 33 of 62
Valued Contributor

Re: Other 18-20 year olds have higher CL


@medicgrrl wrote:
First, it's your opinion that young people are more responsible if they get a credit card at the age of 18. Second, you'll find MANY post's on the forum's that won't back that claim.

First, never tried to pass it off as fact.. second, I included in my post comments about those of us that know how to work the CLI angle and responsibly manage credit. Myself and others should not be punished because of the actions of others our age. I would concede that most people my age should not have access to the credit lines that I do but I do not feel that their should be legislation barring people from accessing higher credit lines because of their age. 

Message 34 of 62
Valued Contributor

Re: Other 18-20 year olds have higher CL

tydawg, I'm on my cell so I didn't quote. I apologize for you thinking that post was to you. It was in reference to the link the OP posted regarding his previous post assuming that if a young person has a card, that makes them more responsible.


EQ 778 EXP 782 TU 729
Message 35 of 62
Established Contributor

Re: Other 18-20 year olds have higher CL

I just have a couple things to add.

Being deceitful about income on a CC app isn't likely to send you to jail. What It will do is probably blacklist you from any bank that finds out. Banks share info too.

Having a high CL for insurance rates, maybe for older adults. But being under the age 21 its quite likely that the rates will be at the higher end no matter what. Teens suck at driving.
Message 36 of 62
Community Leader
Senior Contributor

Re: Other 18-20 year olds have higher CL

Ok rounding off your income is one thing but bluffing your income, or LYING about your income,  is not just a bad idea, it is fraud...

 (there is a loophole however and that only comes into play after your 21 and can have a reasonable expectation of funds to pay for credit... i.e. stay at home mom or a partner you share finances with)

 

THIS DOES NOT APPLY TO YOU YET

"Stay-at-home spouses or partners who have access to resources that allow them to make payments on a credit card can now get their own cards," CFPB director Richard Cordray said in a prepared statement.

http://www.cnbc.com/id/100720709

 

First you clawed back a charity donation...

Then you complained about not getting your quarterly bonus on your BBR

and now your trying to compare yourself to others for worthiness of large CL/CLI's....

Let me repeat myself for clarity..

 

Credit is more than a score. its also income related... 

You might have a great score. but you  don't currently have substance and aging of your CR... low AAoA and such...

 

You dont have a strong CR.

And if you feel the need and appropriateness to clawback donations to charities and organizations you have other issues that are more pressing to address as well....

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

You are putting the pieces in place for a strong, thick, CR but its not there yet.. needs to marinate and set.... 

Credit is not a sprint, but a marathon... 

-j

Message 37 of 62
Established Contributor

Re: Other 18-20 year olds have higher CL

 


joltdude wrote:

Ok rounding off your income is one thing but bluffing your income, or LYING about your income,  is not just a bad idea, it is fraud...


-j


 

 

Definition of character

 

 

6 :  Moral Excellence and Firmness  *  a man of sound character

 

 

https://www.merriam-webster.com/dictionary/character?utm_campaign=sd&utm_medium=serp&utm_source=jsonld

 

.

05/03/16 Fico 8 Scores: EQ 546, TU 501, EX 548
09/01/16 Fico 8 Scores: EQ 662, TU 628, EX 657
10/04/16 Fico 8 Scores: EQ 692, TU 665, EX 686
01/15/17 Fico 8 Scores: EQ 706, TU 670, EX 687 * all Yellow / Good
Message 38 of 62
Super Contributor

Re: Other 18-20 year olds have higher CL

I think people are going a little overboard here when throwing out terms like "fraud" and "lying" and posting dictionary definitions of things. 

 

Credit card companies are quite vague in their terms of disclosing income.  IMO, they are vague on purpose, as to leave the door open for interpretation to some degree.  They use terms like "all income available to you" and "total household income" and "any income you have reasonable access to."  All of these short sentences essentially invite ambiguity.  Perhaps someone has parents that don't live with them but they send them $1000/mo.  That's "all income" but can't be easily verified.  Total household income?  What if you live in a house with multiple people that all have high incomes, but yours is low?  Again, can't be easily proven.  Reasonable access?  Any number of people can define "reasonable" any number of different ways. 

 

The terms of disclosing income from just about every credit card company that I've seen has been extremely small... often 2-3 sentences, again being extremely vague and allowing personal interpretation.  I believe if these creditors really wanted a super accurate number, they'd be much more detailed in the terms.  They'd specify what exactly you should include (and not include) in the number and remove any ambiguity from the equation.  They don't though.  They probably want people to some degree to stretch a little in what they include, as it will result in more approvals, more business, etc.  CCCs also very rarely verify income from a basic app.  Sure, they'll verify it once you get to a $30k-$50k limit, since they want to verify that you can handle a monster limit.

 

The point here is that no one is necessarily lying or committing fraud because they put a different income amount on an app than someone else would that may possess the same annual salary.  Two people may earn $40k/yr.  One may understate their income at $30k, where the other could live with a spouse that earns $100k/yr and has other income sources as well that they feel reasonably justifies them putting $200k income on their app.  $30k vs $200k; both of their tax returns may state $40k.  No one is guilty of a crime here.  This topic is obviously greatly open to personal interpretation.   

Message 39 of 62
Established Contributor

Re: Other 18-20 year olds have higher CL


@medicgrrl wrote:
tydawg, I'm on my cell so I didn't quote. I apologize for you thinking that post was to you. It was in reference to the link the OP posted regarding his previous post assuming that if a young person has a card, that makes them more responsible.

https://www.nerdwallet.com/blog/credit-cards/credit-card-lessons-from-generation-z/

 

 








Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-795,Eq08-807,Tu08-787,EX98-761,Eq04-742
Goal Score: Ex98-760,Eq04-760


Take the myFICO Fitness Challenge

History of my credit
Message 40 of 62
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.