What Is An Exceptional Score Actually FOR?

[YoungFogey]

I've spent years building (rebuilding) getting to scores in the 800s -- FICO 8 is 813. CC utilization around 4 percent. 24 years of credit history on the file. No bankruptcies, no late payments, no derogatory remarks anywhere. I just asked for a $1,000 credit-line increase on Cap One and the system said I owed too much debt for my income. My debt-to-income ratio is 13 %...so, in a word, that's b.s. 

Apart from having a good score as a reference in case I ever get interested in a Federal government job, I don't see the point of this any longer. Good scores, low utilization, all payments on time, plenty of income...and I still can't get a lousy $1K. 

Not gonna lie; I'm fed up and not going to try any longer. I'll obviously keep paying my bills on time and my mortgage and all the rest, but there appears to be zero point in watching my scores like a hawk every day in this situation. 

[RobertS2]

You won't see much of a difference between an 800 credit score and an 850 score. 800+ is effectively perfect, so all the important doors will be open to you. But when it comes to credit limits, your income and other obligations matter too. If you don't have a lot of disposable income, you're not going to get a high limit. 

[YoungFogey]

But I guess that's my beef. Who says I don't have a lot of disposable income? Debt to income of 13 percent means I have more than enough income to support additional debt. If perfect payment history, a high FICO 8, and 87 percent disposable income aren't good enough for a $1,000 credit-line increase then it seems this chase for a "perfect" score is really not productive. 

[Varsity_Lu]

---

@RobertS2 wrote:

800+ is effectively perfect, so all the important doors will be open to you.

---

Hah!  How many people have been denied cards when their scores are over 800.  Guys with 850 scores get offered Max Cash Preferred with $500 starting credit limits all the time.  A high score actually closes doors for some products. 

[Varsity_Lu]

---

@YoungFogey wrote:

But I guess that's my beef. Who says I don't have a lot of disposable income? Debt to income of 13 percent means I have more than enough income to support additional debt. If perfect payment history, a high FICO 8, and 87 percent disposable income aren't good enough for a $1,000 credit-line increase then it seems this chase for a "perfect" score is really not productive. 

---

You're doing well, but you need to change your perspective on what the score actually is.  Cap One doesn't see you as a cash cow for them.  That's the reason they didn't increase your limit.  Don't take the denial personally.  It's a business and they want to turn a profit.  That's all it is.

[Realist]

Why do you think you are the variable that actually matters in this equation? 

Timing in finance is everything.  Leading up to today, everything and their brother, mother, sister and cousin were extended credit, generously.  Today, they are culling the field actively, and only extending credit to a select few.  The lenders, the creditors, are pulling in the reigns.  How many 800+ profiles have already had their behinds smacked, denied, for no valid reason other than it wasn't them, but the lenders lending practice.  Fractional reserve lending practices are a bish.

Anyone today that is being balanced chased, they're pulling in the reigns on a credit profile they don't quite like.  Anyone that hasn't used a card in a while, whether you are 850 score or not, they're sending letters stating - use it or lose it.  We're going to cull that credit line otherwise.   The entire industry today is consticting.

Your score in this scenario, matters a quite a bit less to them.  This isn't your fault in any way.  This is a cycle and the cards will lay, where they lay.

[AndySoCal]

@YoungFogey  I have a 807 FICO score with a 2 to 3 percent utilization rate and no installment loans. I asked Cap 1 for a 500 to 1000 CLI on a card with a 3000 credit limit. The request was denied did not spend enough. Call Cap1 and asked them what amount of spend what make the account elligible forba CLInthey could not tell me. Long story short I closed the account and applied for a non Cap 1 card similiar rewards and was approved 10000. Since that time I have no Capital One cards in my wallet and never will.  I am of the opinion it is not you it is Cap 1.

In your case depending on what other credit cards you have I might look for another card.  Also do not put much stock in  the credit utilation percentage. Percentages can be skewed  and lenders understand that. This percentage is affected by the amount of credit card debt and the total credit card limits. So depending on which of two numbers you change the percentage changes.  Lenders are looking at the dollar amount of the debt not the percentage.

[BrutalBodyShots]

Hey there @YoungFogey. See the reply from @AndySoCal. Regarding your [denied] CLI with Capital One, it seems you're putting far too much weight on your FICO score, income and DTI. Your overall profile is what is considered when it comes to lending decisions. Capital One is one of the most conservative issuers out there when it comes to CLIs. The main driving force behind them on strong credit profiles is high statement balances monthly that are paid in full. They look for low risk Transactors that are using their product heavily, also showing an actual "need" for a greater limit due to high existing statement balances. If you aren't presenting that look to them, the odds of CLI success are small. It doesn't matter if your DTI is 1%, your FICO scores are 850 and your income is $1M a year. As far as FICO scoring alone goes, you're absolutely correct in your viewpoint that greater scores at your stage of the game don't matter. Your CLI denial here is a great example of how credit profile is King to score.

[Patient957]

@YoungFogey 

You can't make any broader judgments about the value of a high Fico score based on Cap One's CLI policies.  Cap One is just weird.  It says nothing about you or your profile.  Go over to Amex.  They will very likely give you all the CLIs you want and more.

[BrutalBodyShots]

Agreed. If one is after monster limits and CLIs, Amex is the play. Capital One is at the other end of the spectrum on that front.