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How do they do this?

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Anonymous
Not applicable

How do they do this?

I have seen numerous posts in here with people in the upper 600s credit score with many thousands of dollars in credit card limits.  As much as 65,000 and such.  I am not saying this is a good thing...for someone who is rebuilding to have access to that much credit.  But, how is that even possible?  I know with my credit in the 600s, they want to give me cards with $300 limit.  I know after x number of months, they will increase it to $500, and I might be able to increase my Discover card after a while with low usage and better credit (it's not a secured), but still...nothing like that.  What are the techniques people use?  Surely they're not opening many, many new accounts with HP each time, and then transferring?

 

Just curious.  

Message 1 of 26
25 REPLIES 25
Remedios
Credit Mentor

Re: How do they do this?


@Anonymous wrote:

I have seen numerous posts in here with people in the upper 600s credit score with many thousands of dollars in credit card limits.  As much as 65,000 and such.  I am not saying this is a good thing...for someone who is rebuilding to have access to that much credit.  But, how is that even possible?  I know with my credit in the 600s, they want to give me cards with $300 limit.  I know after x number of months, they will increase it to $500, and I might be able to increase my Discover card after a while with low usage and better credit (it's not a secured), but still...nothing like that.  What are the techniques people use?  Surely they're not opening many, many new accounts with HP each time, and then transferring?

 

Just curious.  



Sometimes it's time that's passed since they started rebuild . You see cards and limits, but usually not how old the accounts are.  Often, scores are maxed close to  that range for serious derogs/delinquencies, so they are not really rebuilding. That's already been done. 

 

Other times those limits are from lenders who are not averse to rebuilding and/or dirty files. 

 

You need more time. It's a gradual process and you're on your way 

Message 2 of 26
pinkandgrey
Senior Contributor

Re: How do they do this?

A lot of that is CLIs over the years after being a loyal and responsible customer. I’d be willing to bet that most of those huge limits were not the SLs. 

Discover It: 21.5k
Amex Cash Magnet: 18k
Fidelity Visa: 13k
Apple Card: 4.25k
Message 3 of 26
RobertEG
Legendary Contributor

Re: How do they do this?

Your credit score is not the only factor that might be used by a credit card company in establishing your credit limit.

While some creditors base their approval and credit limit approval primarily, or even exclusively, on FICO score in order to save approval time and money, usually in the case of smaller approved credit limits, consideration of other non-FICO factors, such as income and assets, could also affect credit limit approval level.

 

Some creditors create and use their own algorithms for evaluation of credit limit levels that are separate from scoring algorithms.

They are proprietary trade secrets, and thus their criteria are unknown......

Message 4 of 26
Paj315
Established Member

Re: How do they do this?

I've thought the same thing. I have an almost completely clean report (1 medical collection left for $302 that I'm trying like crazy to PFD). No charge offs no bankruptcies etc. And I can't get approved for anything but a teeny tiny balance secured cards. Then I see people with bankruptcies and tons of credit card charge offs and they have huge limit credit cards or are currently getting approved for really nice reward cards. It blows my mind. It seems as if bad credit is better than no credit (or a thin file). I have also wondered if theres some trick to it that I'm missing.

Message 5 of 26
Remedios
Credit Mentor

Re: How do they do this?


@Paj315 wrote:

I've thought the same thing. I have an almost completely clean report (1 medical collection left for $302 that I'm trying like crazy to PFD). No charge offs no bankruptcies etc. And I can't get approved for anything but a teeny tiny balance secured cards. Then I see people with bankruptcies and tons of credit card charge offs and they have huge limit credit cards or are currently getting approved for really nice reward cards. It blows my mind. It seems as if bad credit is better than no credit (or a thin file). I have also wondered if theres some trick to it that I'm missing.


 

The presence of collection is making your credit " a bad credit", especially if relatively recent. 

You have a thin file, and  a collection. Not much there to drown negatives. If you want to see score improvement, and in time get new approvals, you will need to deal with that collection. 

 

Most people with high limits you're seeing have already taken care of negatives one way or another. 

Dont waste your time comparing your profile to others, that's really not how it works as no two profiles are identical.  For the most part, we celebrate their success. 

 

If anything, the best course of action for you  would be to learn from those who have had a successful rebuild. 

 

Good luck 

Message 6 of 26
coreysw12
Valued Contributor

Re: How do they do this?


@pinkandgrey wrote:

A lot of that is CLIs over the years after being a loyal and responsible customer. I’d be willing to bet that most of those huge limits were not the SLs. 


This. Plus, I think that when someone has several large limit cards on their report, they're more likely to get approved for more high limit cards. Sort of a snowball effect. Prospective creditors don't think you'll be impressed with their $300 card when you've already got (and are using responsibly) several $10k+ cards, so they offer you a higher limit to appease you.

 

So the question is, how does someone get several $10k+ cards, in the first place? Often, people will negotiate their SL over the phone, starting as early as when the card first gets approved.... here's a common scenario I see:

 

Website: "Congrats, we've approved you for a new card with a $2k limit!"

Customer: *calls customer service* "Hi, I was actually hoping for a $4k limit on this new card."

Customer service: "Ok, I ran it by our approval team and it looks like we can do that."

(91 days later, requests a CLI on the website)

Website: "Congrats, we've approved you for a new limit of $5,500!"

Customer: *calls customer service* "Hi, I was actually hoping for an increase to $7,500."

Customer service: "Ok, I ran it by our approval team and it looks like we can do that."

 

...and then they continue that process until the creditor eventually decides they've given away enough CL.

 

That's how many people start from a few low-limit cards and end up with a bunch of high-limit cards in a short time. Obviously, this works best when your credit reports are good, but it's possible even with mediocre credit, especially if your income is good.

 

Last month, I had a total CL of $3,100. This month, it's $20,600 - a 664% increase Smiley Very Happy Now imagine someone doing what I did, except starting at $20k in available credit, and you'll see how it's totally possible to end up with a 6-figure CL after just a few online apps and maybe a few phone calls.

    Total Loan Balance: $43k / $65k


    Total SL: $78k

United 1K - 725,000 lifetime flight miles    |    Chase Status: 4/24
Message 7 of 26
FireMedic1
Community Leader
Mega Contributor

Re: How do they do this?

Like Remedios stated. Each individuals credit score is like a fingerprint. No one matches exactly. There can be comparisions to help others grow their scores. But no one will have the same result. I started with 1 card at $1200 with Cap1. But I already had a perfect payment auto loan almost paid off with Cap1. I had no credit cards on my reports when I filed for BK for back taxes. No one was burned. All cards were closed by me due to I was over credit cards. They were closed so long ago. They all fell off my reports.

 

I had plenty of auto loans over the years. So 1 5yr 11 month 30 day late is the only neg. thing on my reports outside of BK. So it was easier for me to grow where I'm at now. So you see. No one has the same history. Its what was in the past that hurts the present and future. Its a game that you have to learn and play it to your advantage with FICO. It can be done. It takes research on here and lots of reading. You'll get there. Good Luck!


Message 8 of 26
Anonymous
Not applicable

Re: How do they do this?


@Anonymous wrote:

I have seen numerous posts in here with people in the upper 600s credit score with many thousands of dollars in credit card limits.  ... But, how is that even possible? 


The score itself is just one factor, which roughly translates, "people with this score are (x)% likely to default." Creditors will take that, then look at all the rest of their credit profile to see if approved and for what limits. Once you get past the initial approved/declined stage, a lot of the limit itself is based on length of credit history, debt load, other account limits, and income. Someone with a "challenged" but not terrible score but long history as well as a solid income is more likely to get a higher limit than someone with a slightly higher score, shorter history, and lower income.

 

Usually you won't see those larger limits unless the person has had at least a year or two of no bad items. Someone's score could be held down by things three to seven years ago, but the last couple years are clean. That person is more likely to get a better limit than someone with a very recent delinquency. 

Message 9 of 26
Anonymous
Not applicable

Re: How do they do this?

Thanks much for the feedback everyone.  I have some stuff that will fall off later this year.  Once it does, I am going to request a limit increase again on my Discover (I was declined the other times).  I have had it since 2011.  That one has a limit of $1000.  I had 2 late payments (sadly back to back) in March/April of 2015.  All else have been paid on time.  That's the oldest account I still have open.  By then, my CapitalOne will be increased to $500 (ha).  

 

I am going to make a separate post with another question, but really appreciate the input here.  

Message 10 of 26
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