Nobody knows their credit limit before applying for a credit card. That is, the credit limit is an adjustable limit and it is decided by several factors.

For having a credit card, we need to submit lots of information to credit card issuers, which might include our job, income, pervious credit report, our transaction history in the past few years and etc. The card issuers would assess all of our personal finance information, decide whether or not to issue us a credit card, and then decide our credit limit.

After our credit card being authorized, we could know our credit limit for this card by checking banks’ online site or by calling the card issuers.

The original credit limit is highly related to our credit scoring and our credit report. A higher credit scoring and a credit report that has less negative information would guarantee a higher credit limit.

For example, Mary is in good credit scoring, say, 780 points, her annual income is $100,000, and she only has 2 Hard Pull on her credit report, while John has around 680 points on his credit scoring with annual income of $50,000, and he has 5 Hard Pull. Apparently, Mary will receive a higher credit limit than John when applying for a new credit card, because Mary’s credit is much more reliable than John.

Besides, your credit limit is also associated with your relationship with this bank.

When you have several debit cards, checking accounts, or credit cards in a specific bank, this bank will be willing to offer you more credit limit. But sometimes the credit limit might be constraint when you have many credit cards in a specific bank.

For example, you already have a credit card with $20,000 credit limit in Chase bank, Chase might only issue you a new credit card with a credit limit of only $5,000, because the Chase bank might consider that they have issued you enough credit limit and you’d better not to ask more.

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