A little confused about my latest credit limit.

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Babushka
 
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A little confused about my latest credit limit.

Postby Babushka » Sat Jan 10, 2015 10:27 pm

Hey everyone I'm new to this website. I recently applied to a Bank of America credit card and was approved for only 800. But both of my previous credit cards that I was approved for gave me a higher limit. I have never maxed out either of my cards and I always pay more than The minimum. Why would I get such a low credit line compared to my other cards? I am fairly new to credit cards. My oldest card is only 3 years.


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kcm7
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Postby kcm7 » Mon Jan 12, 2015 9:47 am

It's impossible to know. Income perhaps? If BofA saw that you have 1) A couple other open cards (assuming they're still open) and 2) An income that it thinks isn't enough to pay off all the cards if the bottom drops out, it might have given you a conservative limit.

But that's just a guess.

I've never had a card with BofA, but I have been surprised when people with worse credit than I have get super-high limits with various issuers, while Barclays gives me a small limit. But there are so many factors at play.
Cards:

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

takeshi
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Postby takeshi » Mon Jan 12, 2015 9:53 am

Difficult to say but you can't just assume that getting X limit with a creditor/card means that you will get X or better with the next creditor/card. For one thing, creditors vary in their criteria and the credit they're willing to extend for a given credit profile. Product can also vary in critieria even with the same creditor. Another possibility is that your credit and/or income may have changed over time as well.

Babushka wrote:I have never maxed out either of my cards and I always pay more than The minimum.

Not maxing helps but there's a lot of ground between 0 utilization and maxing a card. 30% is the generally recommended maximum and anything over that could be considered high.

Minimum payment doesn't matter except for keeping an account current. What's your individual and overall utilization like? How are the other factors used to assess your credit?
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

popamode72
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Postby popamode72 » Mon Jan 12, 2015 4:19 pm

Babushka wrote:Hey everyone I'm new to this website. I recently applied to a Bank of America credit card and was approved for only 800. But both of my previous credit cards that I was approved for gave me a higher limit. I have never maxed out either of my cards and I always pay more than The minimum. Why would I get such a low credit line compared to my other cards? I am fairly new to credit cards. My oldest card is only 3 years.


Don't worry. They started me out with 900 initially but gave me really good APR terms and an intro offer. You can go for a credit line increase on the card in a few months and I highly recommend calling one of their credit analysts directly so they can do that for you rather than having to deal with the automated system online. They have more power to raise the limit than the computer can because they are looking at everything manually. That's how I was able to go from $2k to $3k on my card with them though it did require a TU HP.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)



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