I'm with @Remedios . It was a gradual process for me. First started with low $300 limit approvals, then as my profile improved, I would be approved for $2-$3k limits, then $5-$7k, then my largest SL came from a CU: Dover FCU ($16.99k) last summer. Then my Navy Amex got a $6k CLI from $9.5k to $15.5k. So I guess it was also CLIs over time that helped because this card started at $1k.
Bottom line: build relationships with lenders, pay on time, ask for CLIs/hope you get auto-CLIs, and increase income if possible.
@IcyCool7227 wrote:I know my threads a little old but I have another question related to this. Do new creditors as well as the computer algorithms when you apply, look at your existing limits and make a determination based on that as well for 10k SLs?
Yes, at least sometimes. Depending on the issuer.
@keekers wrote:
@IcyCool7227 wrote:I know my threads a little old but I have another question related to this. Do new creditors as well as the computer algorithms when you apply, look at your existing limits and make a determination based on that as well for 10k SLs?
Yes, at least sometimes. Depending on the issuer.
Yes. Some lenders want to win your business by giving you your highest credit limit (Navy Federal?). Other lenders will absolutely not want to be your highest limit (US Bank?).
@IcyCool7227 wrote:I know my threads a little old but I have another question related to this. Do new creditors as well as the computer algorithms when you apply, look at your existing limits and make a determination based on that as well for 10k SLs?
yes, it's lender dependent, but your future limits are highly based on both your current limits and your reported usage (even PIF usage) of those limits
the best way to get high limits? find somebody to give you a high limit to start with
@GZG wrote:
@IcyCool7227 wrote:I know my threads a little old but I have another question related to this. Do new creditors as well as the computer algorithms when you apply, look at your existing limits and make a determination based on that as well for 10k SLs?
yes, it's lender dependent, but your future limits are highly based on both your current limits and your reported usage (even PIF usage) of those limits
the best way to get high limits? find somebody to give you a high limit to start with
This is exactly why I went for a secured credit card with a $5,000 credit limit when I started rebuilding.
Hi,
In my expereince, it's been Income, DTI, Scores, Bank's risk appetite, and economy. In that order.
GL!
@IcyCool7227 wrote:I have fair credit. Even when I had great credit in the 730s I never got approved for a card with more than $5000 SL and never had a card past $7500. So I see a lot of posters saying they have all these $10k plus CLs but how does that happen? Do you need excellent credit or just a very high income or both?
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@IcyCool7227 wrote:
I know my threads a little old but I have another question related to this. Do new creditors as well as the computer algorithms when you apply, look at your existing limits and make a determination based on that as well for 10k SLs?
Somehow I missed your initial posting @IcyCool7227, but I saw it when it floated to the top of the forum. Credit limits are an interest area of mine and I've posted about them often including recently. Go to >this recent posting< and follow the links back in each one if you want to read more.
FICO plays more of a gatekeeper role in the new credit approval process. Lenders use that score to determine if you qualify for their underwriting at all, and I've found that it often plays a role in the APR assigned to a new card. If you want the best APR, you'll need a FICO in excellent range, most likely. If your FICO is at the bottom end of whatever their approval range, you'll likely get the highest APR listed in the disclosure.
On the other hand, credit limit is only partially affected by FICO but moreso by other factors. You can have an 850 FICO but a credit limit is based on ability to repay the loan. So even an 850 FICO with very low income will get a lower CL. Lenders do also consider your other cards, so you can expect to be approved for somewhere in that average range or slightly above it. So likewise, high income and good FICO scores alone won't open the door to high limits if someone has an undeveloped credit file. We see that sometimes on the forums, new members who just have never applied for credit but are already at high incomes. Lenders don't like to be way outside the range of what you've demonstrated that you can manage responsibly. Consequently, limits for most of us have slowly risen over time. But also, over time my income has risen which has additionally helped my starting and existing limits to grow higher. As others have posted, I've been pleasantly surprised at reaching various new heights along the journey!
So yes, having high limits can lead to more higher limit approvals!
