Question : What do credit card companies base your credit limit on?
I am pretty positive it's based your salary.And that they look at your credit reports to see credit limits in other cards.My guess is no more than 25% of your salary in credit.Any other guesses on how credit card companies figure out credit limits?Credit card companies do not give out this information.
- asked by Huntsman
All Answers:
Answer #1
Instead of asking YA for "guesses" why don't youjust call some credit card companies and ask themso you will know for sure?
- answered by redhead
Answer #2
I seriously doubt if it's based on a percentage ofyour salary. Each company would have it's owncriteria based on your credit, income, and otherfactors. If you fall within criteria A, you get a$500 limit; criteria B, your get $1K. Most creditcard companies have re-assessed that criteria andaren't even offering huge limits even to highlyqualified customers.
- answered by bdancer222
Answer #3
Good question!Your credit limit depends on youroverall credit risk. Credit card companies do notwant to allow you to charge a great deal on acredit card unless they are fairly sure you willpay it back responsibly. Believe it or not, theyprobably do not want to have to deal withcollections and lawsuits either. There are anumber of factors which contribute to your overallcredit risk, such as your credit score and yourincome relative to your debt. Your credit score isessential because a credit card company can beconfident in increasing a credit limit if you haveproven capable of paying lower limits. Likewise,card companies want to see that you income cansupport your existing debt and credit lines beforegranting you additional credit.
- answered by Credit Expert
| 
