Just curious what everybody thinks beginning credit lines should be? It seems that people who have not have credit problems probably deserve an opportunitiy to prove that they can handle credit, but on a limited amount. My first credit line over 15 years ago was for $500 mc which seemed ok at the time, but with the high cost of everything, what do you think should be an adequate beginning credit line. Personally, I think about $1,200 because that it still a small enough amount that most people shouldnt get in any real trouble if they max it out too soon.
I think $1,000 is a good CL for people who are just starting out. Then again, it all depends on how much you spend on everyday items.
MY MIN. IS $5,000. ---------------------------------------------------------------- One card at $5,000. Next higher card is $7,500. I had STATE FARM give me a "TOY" credit card...($1,000) The defenition of a "TOY" credit card is 80% lower than your lowest limit!!! Some people should not have a limit >$500...others they sky is the limit...TILL YOU HIT A BRICK WALL AT ABOUT $100,000.
Hi, 1500 to 2000 sounds nice for a beginner. I know Capital One is famous for giving people the HUGE LIMIT of 200 or so.
...MORE...it also depends on how much you spend every month...if you spend only $100/month...there would be no reason for much more than $500..but if you spend >$1,000/month...$500 wouldn't cut it...
My very first card was an AMEX in 1974. A couple of months later, an interoffice enevople appeared on my deak. In it was a MC with a $750 cl. The letter with it said the bank I worked at had entered a correspondent relationship with a larger holding company and as a perk, we were being issued these cards and the annual fee would be only 6$. A 50% savings. The interest rate was 18.5% Well, this bank merged with another bank which, merged with someone else. About 10 years ago, the survior of this last merger sold the cc operation to MBNA. That little $750 card how has a cl of $14500.
I would base it upon income. Someone who makes $12-15000 a year should probably not have access to a $2000 credit line right off the bat. If they start with $500 and have it increased from time to time. The temptation is too great with too high a CL right from the start. Just my 2 cents.
I don't think that they are really doing a beginning credit card holder any favor giving him/her any substantial limit. They can always raise it later. Also people with their first cards are going to be young people in college or beginning jobs not earning much yet. The credit line can and should be raised after they've proven that they use it responsibily, not before. I think a card with any limit is exciting for a beginning credit card holder. It is just a nice feeling that someone is willing to trust them. People just starting out probably can get a kick out of being able to charge cd's, Bennigan's dinners, or rent videos, they don't yet need the ability to be able to charge week long stays at the Westin or dinners at the 4 seasons.
my daughter just got first card, she's a Jr in college, and has had checking account at BofA for two years. BofA gave her 1500 loc, she has no other cc's. this is way plenty, in truth 500 would have been sufficient
I think the limit for the first card should be 5000, but if you have had problems any limit should make you happy. The brick wall is usually around $150,000 of available credit. Limits increase with exercise. Use the credit, use it wisely, make large payments, make them on time. Use patience and discipline. www.creditsense.com
Which one(s) have you exercised and gotten no results. Did you carry a balance for any length of time? Did you borrow close to the limit and make some large payments? I am curious. It has worked with all my cards, except Providian, which enventually I closed. www.creditsense.com
I have "MAXED OUT" every card I have and paid in full at one time or the other... AMEX IS A NO GO 2+ YEARS DISCOVERCARD TOOK YEARS CITIBANK HAD TO DO BDD + 1/2 BDD MBNA 6+ YEARS NOTHING ($1,000 & $500 7+ years ago) CHASE 2+ YEARS NOTHING TARGET VISA +$500 I have made VERY LARGE PAYMENTS... AMEX HAD A CREDIT BALANCE FOR A WHILE...that didn't even help!!! I "SOCK-DRAWERED" DISCOVERCARD...might have helped??? MBNA WAS PAID OFF FROM >$20,000 DOWN TO $0 IN 2 MONTHS...NOTHING EXCEPT 9.99% "GO-TO" RATE AND A 3.99% BT (NO FEE)...on one BT...I might see if they will do another one NO FEE... THE "GEORGE FACTOR" IS REAL!!!
Then it must be that you pay them too fast. I have had success with all of those cards. I do carry a balance, they usually give me the offers while I still have a balance, then I paid them off and borrow at the lower rate. www.creditsense.com
I PAID MBNA AS SLOW AS 2 YEARS...AND AS FAST AS 2 MONTHS...NOTHING WORKED... IT'S JUST THE "GEORGE FACTOR"...
MBNA is one of my best. Started out at 8000, it is up to 16,000. I am getting ready to pay them off, as the "teaser" just expired. I'll let you know what happens. I know I will get at least a 9.9% for 6 months. www.creditsense.com
