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How are credit card limits determined?
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Asked by AppleRules 1 year ago Flag this question Flag this Question

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Underwriting, which is the technical term for both the approval and the credit limit of a credit card application, can vary for different credit card companies. A company's underwriting criteria is often a closely guarded secret since it can determine how profitable any given company can be.

There is a good article from Credit Karma about it: http://blog.creditkarma.com/credit-cards/how-a-credit-card-limit-is-determined

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SpookyCookie 2 months ago

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I would say that your current income is not taken into consideration, though. I have had many instances where I was told by reps that they could not update my income. So they're still using my income from when I applied back in 2000 when I was a student.

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kyrabeatty 1 year ago

Underwriting will vary by issuer. But historically HHI is an underwriting criteria.

CK Moderator

It would be awesome if this site offered a credit line simulator, similar to the credit score simulator but applied to determining how much of a credit line or loan amount one could generally expect based off different inputs such as credit score, income, payment history, etc.

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bprice 1 year ago

Thanks for the recommendation. We have something in the works.

CK Moderator

I have a Juniper card with a 5k limit, a personal Chase card with a 2k limit and a business Chase card with a 5k limit. My income the past few years is more the double what it was when I first opened these cards. Can I contact these companies and send a statement from say oct of 2009 and get my limits raised to 5k & 10k? Currently making over 100k.

Thanks.

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eddiegorniak 9 months ago

The first thing to do is simply call customer service and request a credit line increase. Keep in mind some credit card companies will run another hard inquiry as part of the process. It is during this process that some credit card companies will request proof of income to increase the credit limit.

CK Moderator

Underwriting, which is the technical term for both the approval and the credit limit of a credit card application, can vary for different credit card companies. A company's underwriting criteria is often a closely guarded secret since it can determine how profitable any given company can be.

There is a good article from Credit Karma about it: http://blog.creditkarma.com/credit-cards/how-a-credit-card-limit-is-determined

Reply

SpookyCookie 2 months ago

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