Breaking past the $5,000 limit

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kcm7
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Breaking past the $5,000 limit

Postby kcm7 » Wed Jun 18, 2014 9:57 am

I know there are no absolutes when it comes to credit, so apologies if this falls under the "Miss Cleo" category.

I've gotten approved for a few cards in the past two years, and all of them have a 5k limit. I was wondering if this is some kind of plateau and you have to establish a really awesome credit history before issuers start approving you with higher limits on a new card. My TU FICO hovers around the 780 mark.

Is there a way to break past this 5k limit? Do I need to get credit limit increases on my current cards so that maybe my next issuer gives me a higher limit on my next card? Establish a longer credit history? Or are some issuers just more generous than others?

And, out of curiosity, what was the first card you all applied for that gave you a more-generous-than-expected credit limit?

I make payments on my cards throughout the month to keep my utilization down, but it would be nice to have more available credit so I wouldn't have to worry quite so much about that.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG


432521
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Postby 432521 » Wed Jun 18, 2014 10:33 am

My TU fico score is around the same as yours maybe a couple of points short and my highest limit card is higher than 5K. What I can tell you is if one of your cards that is at the 5K limit, it is an AMEX, and it has been 6 months since your last CLI request ask for one and you should be bumped up if your income is high enough. The best thing about that scenario is that the AMEX CLI will be a soft pull.
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
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takeshi
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Postby takeshi » Wed Jun 18, 2014 12:22 pm

kcm7 wrote:I've gotten approved for a few cards in the past two years, and all of them have a 5k limit. I was wondering if this is some kind of plateau and you have to establish a really awesome credit history before issuers start approving you with higher limits on a new card.

It's a plateau but not everyone hits it. My cards jumped from $2,500 to well over $5,000. You don't need "really awesome credit history" (I still had my BK reporting) but you do need the credit and income to support it as well as a creditor with critiera that will net you limits greater than $5K.

kcm7 wrote:Do I need to get credit limit increases on my current cards so that maybe my next issuer gives me a higher limit on my next card? Establish a longer credit history? Or are some issuers just more generous than others?

Yes to all. All the usual factors involved in credit scoring matter:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Make sure you optimize your utilization and that everything is in shape when you apply. Utilization can limit CL's granted and increase APR's offered.

kcm7 wrote:And, out of curiosity, what was the first card you all applied for that gave you a more-generous-than-expected credit limit?

USAA. Credit unions with more lax approval requirements are generally suggested. If you have an AmEx then Google and read the 3x CLI thread. If you don't have one consider getting one (read up on backdating as well).

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kcm7
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Postby kcm7 » Wed Jun 18, 2014 5:15 pm

Thanks! Especially for the info on Amex. I've got my eye on the Blue Cash Everyday and it looks like I shouldn't waste any more time, given the backdating benefit.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

MB131174
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Postby MB131174 » Wed Jun 18, 2014 5:38 pm

Consolidations is another way. My Chase Hyatt has a $15,000 limit thanks to consolidating my now closed CSP and I think a Freedom into 1 card.
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supercoolman
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Postby supercoolman » Thu Jun 19, 2014 12:03 am

my first card was a $2000 VISA Platinum back during university time. got a $5000 VISA Infinite as my second card 4 year after the first card. I'm surprised that most of the VISA Infinite are geared toward travel, but not cash back.

MemberSince99
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Postby MemberSince99 » Thu Jun 19, 2014 6:50 am

My first card limit over 5k was through my bank, though Elan (US Bank) does their cards, Associated. I had just gotten a 3k limit card that hadn't reported (the crap one green 1.5% card that pre-dates QS) and they had been sending me requests to apply for many months. I finally bit, online, and got an instant approval of 9k. This was the non-rewards version that said they gave "generous" limits. (They weren't kidding, I couldn't believe it). Once that was breached my other lenders started going up as well, as GE is well known for frequent soft CLIs with heavy use and PIF behavior. Once this was established the other lenders started matching or beating depending on who it was. Of course Discover kind of does their own thing regardless. But generally once you cross that barrier the rest start to follow. Now I have only one card under 5k, Discover to no one's shock I'm sure. I leave it open in the hope that one day it will grow, but then I had hopes for a Playboy model girlfriend too and that's worked out about as well. So it just becomes a question of will I run out of patience with their stinginess at some point, and who knows.

attrapereves
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Postby attrapereves » Tue Jun 24, 2014 6:44 pm

How do creditors determine your credit limit? All of my cards have CL between 3000 and 4500. I would close out a card or two if I could get some of my better cards increased.

MemberSince99
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Postby MemberSince99 » Tue Jun 24, 2014 7:04 pm

To be honest no one really knows. Different lenders probably have different criteria. In general the higher the income the better, the higher the credit score the better, and having similar limits helps, as well as your age of credit and history, and the amount of spend you put through your account and how you pay it with them. I doubt closing cards is going to cause your other lenders to bump your limits.



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