Shouldn't CC apps consider current CCs?

[Anonymous]

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@Anonymous wrote:

 I have two rotating category cards (Freedom and Discover) and have never spent more than maybe $500-$900 in a cycle on either one and that's if the category suits my spend that quarter.  There are quarters where I'll go spending next to nothing.  Last year I put > $40k on CCs, so my spend is pretty decent relative to what those rotating category cards see.

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If I may ask, what's the $40K spend on and is there no category for it? 

I think they do need to add a couple new categories, as some go unused by me. Due to either the wrong coding, or having competing cards.

[MakingProgress]

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@Anonymous wrote:

I was thinking about this a little bit ago and was trying to consider it from the lens of the lender.  I was over in the approvals section of the forum and someone posted about being approved for a Freedom card with a $23k+ SL.  To me, that just seems like a poor business decision on the part of Chase, or obviously whoever wrote the program to decide on a SL like that.  Very few people are going to use a rotating category card nearly enough to warrant such a limit.  This goes for Discover too (who I haven't seen a $23k SL from, but will gladly hand over $40k-$50k+ limits in time on a card that barely gets used.

We do talk a lot on this forum about larger [current] limits perhaps stimulating larger future SLs due to lenders trying to "compete" for your business, but is it really worth the risk on their end?  When you submit a credit app and your CR is pulled, obviously all of your revolvers can be seen along with their limits, balances, whatever.  If someone has only a few CCs, to me that would suggest that the card being applied for currently would stand a greater chance of getting used more.  Conversely, if the computer "sees" (say) 10+ revolvers already in use currently, do we really think they're going to put a significant spend on a strong 5-figure SL?

I don't know, I just feel like lenders too often take on significantly more risk than the [potential] reward seems to be?

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I agree 100% with you.   

I recently was approved for a US Bank Cash + Visa.   Now around here I have heard that US Bank usually gives small starting limits and I was truly hoping that they would give me at least a $2K limit.   Imagine my suprise when I got a $20K SL.  On my CR I have an Amex BCE with a $25K limit and we all know that Amex can be and in my case was generous with CLI.  And I am AU on a Sync / Lowes card with a $20K limit.   Those are the only CL above $20K to which I have access.

I don't know US Bank was thinking. 

[Anonymous]

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@Anonymous wrote:

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If I may ask, what's the $40K spend on and is there no category for it? 

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I guess bills mostly and a little merchandise.  The bulk of it was me paying my mortgage and car payments through a CC (Plastiq) last year, which probably made up $22k or so of the ~$40k.  I also paid every other bill I had via CC, so when talking phone, cable, car insurance, electric, oil, garbage, water/sewer, etc. that was probably another easy $8k over the course of the year.  So just talking it out here, probably 75% of my spend went to that type of stuff.  Then maybe $5k to groceries, leaving $5k remaining for whatever else like gas, dining/entertainment, etc.