Credit Limit

[sriki]

I got my first Chase rejection. I was half expecting it as I knew I had many inquiries on my credit report. However, I took a gamble and lost. When I got my letter, there were three reasons on it.

1. Too many recent credit inquiries
2. Business is too new
3. Maxed my credit line with Chase

Though I will be cancelling a few cards in the coming months, I am interested in #3. My total credit line with Chase is close to 2:1 ratio of income: credit line. I understand there could be other things in addition to income that determines a credit limit. Any insights into how this works?

 

[pillow25]

I assume you applied for the Ink Bold? Or did you apply for the Ink Plus?

 

[augustus23]

Chase has a maximum amount that they are willing to give out based on factors that no one knows.

You can still apply for cards and shift credit around, but you seem to have it the ceiling, assuming all things remain the same (like income, debt to income, ect.).

How old is your credit file? You seem to be moving too quickly, based on the reasons given.

 

[smittytabb]

I got my first Chase rejection. I was half expecting it as I knew I had many inquiries on my credit report. However, I took a gamble and lost. When I got my letter, there were three reasons on it.

1. Too many recent credit inquiries
2. Business is too new
3. Maxed my credit line with Chase

Though I will be cancelling a few cards in the coming months, I am interested in #3. My total credit line with Chase is close to 2:1 ratio of income: credit line. I understand there could be other things in addition to income that determines a credit limit. Any insights into how this works?

They have been turning down a lot of people for business cards, even good customers with high credit ratings. This began in calendar year 2014 and continues.

 

[satz]

It also has to do with recon. If you do not have a legit business with a fair amount of sales, the recon agent will most likely deny you. If you leave the app alone, you are more likely to get approved.

 

[sriki]

I don't call for any app except for the citi aa 100k offer.

Note: I applied for ink plus and ink bold. Bold got rejected and plus is approved. Both went to review and I did not call in for either. I believe the bold hit EX and plus hit TU.

 

[PainCorp]

My Chase CL is about 5k under the income I put on my most recent application, which is down about 20% from my last application before that. I think the issue I'm running into is the credit across all accounts, as that totals about 3x my income. That's not including 2 auto loans, which are for a little above my annual income combined.

 

[MotownMan]

There is a great article on NerdWallet that answers your question. It offers the reasons as your risk, debt/income, expenses, payment history, macroeconomic trends, competition, market strategy, and says other stuff could even factor in too. Sounds pretty complicated and not something we will ever know for sure.

[www] [nerd] wallet.com/blog/tips/credit-card-issuer-determine-limit-how/