charged wrote:So if I had said that I make 250k a year and have half a million in the back would I get an insane credit limit without any consequences for lying?
Just because you didn't encounter income verification when applying doesn't mean that you'll never encounter it. It can happen down the road as well. Always consider the evidence that you'll have to submit to a give creditor if you run into income verification. Income is only part of the consideration for credit limit. Your credit profile matters as well. High income by itself isn't going to guarantee high limits. There are plenty with high income and poor credit that aren't able to qualify.
TXviking wrote:Now I'm curious -- what kinds of things?
Activity, including activity by AU's is just one example.
TXviking wrote:The link between annual income appears to be tenuous. My limits right now are generally between 10-25% or so of my annual income,
Again, it's not just about income. I'm not sure that specific limits versus income is a useful metric. The total limits with a given creditor will give a better idea of what each creditor is willing to extend to one based on income and credit profile. Of course, there are those who end up hitting max exposure with a given creditor so they cannot get more granted even with a better credit profile and/or income. I've run into it myself with USAA which has a max exposure of 50K, for example. I know I've also hit my internal limit with Chase with total limits with them at about 54% of my income. I haven't pushed it with AmEx but I'm at 38% with them.
TXviking wrote:but back before the Great Recession, industry consolidation, looser regulation of the credit card industry etc, they used to be much higher — even though I made much less back then. At one point I had several cards that each had credit lines higher than my annual income.
That has an impact as well but that affects everyone. A given creditor may tighten or loosen underwriting criteria as well for business reasons, impacting what limits people can qualify for.