I wonder if there is any connection between income and credit limits anymore. Traditionally, credit limits were supposed to be approximately 10% of income, but with all these real high CL's, I'm not sure if this is true any more. It seems like CL is today based more on one's payment record and fico scores.
If you are asking if there is a relationship between what your total credit limit is and your income, the answer is no. The ability to get more credit cards and or more total credit limit is based on your FICO score and other factors in your credit report like how many credit cards you already have. Income is not part of your credit report or any FICO score. If, on the other hand, you are applying for a auto loan or mortgage, then your income and total credit limits do mater. 10% sounds pretty stingy to me but I have no idea what the max you could have before it would count against you.
Yeah, but does it make any sense not to have a correlation between income and credit limits. Some earning 100k should be able to pay back much more than than someone making 20k. Ther lifestyles and spending patterns are going to be different and the former is going to be able to spend more and pay back more.
I have not shown over $52,000 in income at any time, however my limits are $170,000. My wife has over $100,000 in limits and she makes less than $50,000. My sister makes less than $40,000 and she has over $100,000 in limits. It is based on how you handle your credit. Borrow, make large payments and they won't care how much you make. www.creditsensecom
AMEX still wants to know about your income and your CL by AMEX still depends on your income.Source: American Express Centurion Bank representative.
That may be so. I do not have a personal AMEX, however, I do have 3 Corporate accounts with my consulting company and they add up to $120,000. The companies income is less than $150,000. www.creditsense.com
I do have some experience with Blue from Amex...since opened 1999 received just one increase...from $8000 to $9000...that's all...no baddies...
Speaking of the relationship between income and credit, check out this: "I was denied credit on your rating board. Please re-evaluate and advise. I own a $750,000 home free and clear. I own a 2001 Lincoln Town Car and a BMW convertible with no liens. I have current investment portfolios in the low eight figures. I have a line of credit with a national bank, also in the low eight figures. I am retired with an income in the middle six figures. My credit report shows a delinquency with an upscale retail store. This was a purchase made by my deceased wife and returned, but proper credit was not given. This occurred when the store was sold to another parent company. I currently have an active valid charge account with the retailer that is closed. I also had a dispute with another lender, as well as a dispute with a former cable company. As you can see by my report, I have existing credit with various credit card companies. I charge approximately $50,000 to $75,000 per year and pay as a general rule within 30 days. - LYB Dear LYB,Your question makes one very good point â?? having a lot of cash and investments doesnâ??t necessarily make you a good credit risk. Lenders typically make their decisions based on your credit history. They donâ??t care if you have all the money in the world if you donâ??t pay them back on time, as agreed. Iâ??m not sure what you mean by "our rating board." I suspect you are referring to risk scores, an issue Iâ??ve talked about extensively in past columns. Experian does not rate credit or make lending decisions; we simply provide credit reports. Lenders often use risk scoring models to help them review the credit reports. The main factor that demonstrates credit risk is how you have repaid other debts, as reported in your credit history. I donâ??t have access to your credit report, so I donâ??t know what your payment history looks like, but I think I can make some reasonable guesses based on what you said in your question. It sounds as though you have several accounts reflecting delinquencies, which you dispute. If you are unable to resolve the issues with your lenders, you may want to add statements of dispute to your credit report from Experian. To do so, request a report directly from us. The report will include instructions to contact a representative who can help you with that process. You also hint that you may have other delinquencies in addition to the ones you mention. The fact remains that a late payment is a late payment. Having a mountain of cash doesnâ??t mean a thing to lenders if you arenâ??t sending to them the amount you owe on time. Thatâ??s how they stay in business. Thanks for asking." http://www.experian.com/corporate/max/max052202.html
