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From: nucleus on 1 Aug 2010 10:18
does anyone here know how credit card companies determine
an applican'ts credit limit, if there is no place on the application
to request a limit? is it based primarily on a percentage of
annual income?
From: h on 1 Aug 2010 15:30

"nucleus" <rose122550(a)yahoo.com> wrote in message
news:7c165f0e-7db0-427a-a624-e8012fa46507(a)p22g2000pre.googlegroups.com...
> does anyone here know how credit card companies determine
> an applican'ts credit limit, if there is no place on the application
> to request a limit? is it based primarily on a percentage of
> annual income?

It's whatever they feel like giving you at the time. Some magic formula
involving your credit score, no doubt. Each of my three cards has a credit
limit of over THREE TIMES what I make in a year. These companies must be
insane. They've raised my limit every year for over 30 years because,
apparently, since I spend within my means and pay it off every month, they
think if they give me more I'll charge more. Doesn't work.

The only thing I don't own outright is some industrial equipment for my
business. They offered 0% interest for 36 months, so I can take the payments
as business deductions instead of having to depreciate the purchase over 7
or whatever years. Much better tax-wise, and I didn't have to fork out the
$15,000 all at once.

I don't need credit, but I'm more than happy to use their money for 30 days
and take the $750 cash back every year! It seems very unfair that those who
need credit can't get it while those of us who don't are rolling in
"available credit". That said, if I actually charged even one card up to the
limit I would be completely unable to even make the minimum payments. The
economy still sucks, and I'm making less than 25% of what I made 6 years
ago.


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