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I, like millions of others, have a Citibank Visa card as part of my CostCo membership. The credit limit is $1000. They just declined my request to raise the limit.
I don't carry a balance, never late with payment, no debts except for two mortgages – our home plus an investment property – that are both well above water. My credit rating is superb. My Chase Visa has a $22K credit limit.
I'd like a higher limit because Costco shopping expeditions can get expensive. Two or three in one month and I might blow through that $1K. Also, I'd like to get the wife a new Mac laptop which will easily exceed $1K.
What's the deal with Citibank being stingy on credit limits? Seems like it's not good for Costco. I've talked to both companies and have spent hours on the phone with their escalation team. All that time and trouble wasted.
I just use my other Visa or else my ATM Visa when shopping at Costco, but I think I get more rebate when I use the "official" visa.
I quit a high paying job in '22 and now I'm back with them, working as a part time contractor. My income is not as high as it was in '22 but it's not zero. Do credit card companies not take net assets into account when evaluating someone's creditworthiness? If you have moderate income but lots of assets, is that not acceptable for a $5K credit limit? Seems like I'm missing something here.
Last edited by blisterpeanuts; 05-08-2024 at 10:16 AM..
If you come close to your credit limit, then pay the bill online & get the balance to zero again, then you can buy more things. They should tell you why you are not approved for a higher limit.
My Costco Visa limit is many multiples higher than yours. I recall at one point we asked for a higher limit and they increased it. I told them I was buying something expensive and wanted to charge it on my Costco Visa and they gave me the higher limit.
If you come close to your credit limit, then pay the bill online & get the balance to zero again, then you can buy more things. They should tell you why you are not approved for a higher limit.
They told me (today) that I have too much debt. But the only debt I have is my two mortgages. It might also be that they don't know my exact income right now since it originates in Europe, so maybe they view me as $0 income and $XXX,XXX in debt therefore not a good risk.
I guess I should just swallow my pride and spend up to the limit each month (currently I spend much more than that on my other Visa which has a higher limit), and maybe it will convince the algorithm to allow higher limit.
By the way, interestingly, I tried to get an Apple credit card a few months ago because it sounded kind of innovative, and they turned me down as well. I've apparently fallen into some kind of black hole of untrustworthiness...
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,116 posts, read 7,591,005 times
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From my experience, Credit is issued by Income, not assets; while Rate is assigned by card's features. CC debt is unsecured. We the CC-Visa/MC as a purchasing payments cards.
I can get a higher CC limit at my CU (no frills, low apr) than at Citi-Costco (cashback, high apr) card.
I purposely keep the CC's limits far below what the CC has authorized.
My stated income (verifiable) is far higher than my line 15, taxable income.
From my experience, Credit is issued by Income, not assets; while Rate is assigned by card's features. CC debt is unsecured. We the CC-Visa/MC as a purchasing payments cards.
I can get a higher CC limit at my CU (no frills, low apr) than at Citi-Costco (cashback, high apr) card.
I purposely keep the CC's limits far below what the CC has authorized.
My stated income (verifiable) is far higher than my line 15, taxable income.
This actually makes more sense. What does it matter to a credit card issuer that an applicant has assets when a person has to use cash to pay off revolving debt?
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,116 posts, read 7,591,005 times
Reputation: 9870
Quote:
Originally Posted by Aspe4
This actually makes more sense. What does it matter to a credit card issuer that an applicant has assets when a person has to use cash to pay off revolving debt?
IMO, has to do with what is verifiable by third parties. Stated assets is not verifiable but may be subject to fraud laws. -see Trump NY, early 2024.
Revolvers need cash flow to be sustainable. They are not asset backed other than your implied promise to pay.
Assets can already be pledge to other debt (liens). Or just out of reach of lenders-ie penions, IRA.
They told me (today) that I have too much debt. But the only debt I have is my two mortgages. It might also be that they don't know my exact income right now since it originates in Europe, so maybe they view me as $0 income and $XXX,XXX in debt therefore not a good risk.
I guess I should just swallow my pride and spend up to the limit each month (currently I spend much more than that on my other Visa which has a higher limit), and maybe it will convince the algorithm to allow higher limit.
Maxxing out cards does not show them that you know how to manage debt.
You have too much debt by doing that!
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,715 posts, read 81,596,197 times
Reputation: 58053
I thought all of the credit card companies were tightening up lately due to the amount of late payments, to reduce their risk. My Costco card limit was raised twice, most recently a couple of years ago, and is well more than I would ever need. Because of the cash back we use it for everything, and pay the balance every month so we never get charged interest.
I had the opposite happen a while back. I have a Citi card and for 3-4 years, I paid it off in full every month. Never missed a payment. And was only charging about 1/3 of the limit per month. Then one month I forgot to make the payment. As soon as I noticed, I immediately paid the full balance.
Here is what surprised me - very soon after that late payment, they raised my credit limit.
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