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The Magic $35,000 Figure


cv91915
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I don't think the following are coincidences about the $35,000 figure when it comes to credit cards. The question I have is WHY is this number significant? Is this perhaps the limit past which FICO no longer factors the card's balance and/or limit when it considers your utilization? Any other thoughts or theories?

 

- Conventional wisdom suggests that when calling the GECRB backdoor number you should "aim high", and ask for $25,000, knowing that they'll counter if you only qualify for a lower amount. I called recently and asked for $35,000 on my PayPal Extras MC, and was approved by the analyst who picked up the phone when I called the normal backdoor number (i.e., I didn't call the EO, or get transferred to a senior analyst when I called the backdoor number);

 

- A few months ago I went online and requested a CLI on my $20,000 PenFed Platinum Rewards Visa. I got a conditional approval for $23,000, and had to submit pay stubs. I submitted them, and without any further action on my part they approved me for $35,000;

 

- Last week I called Wells Fargo to request a CLI on my hysterically funny $1,000 Cash Back Visa. I called the number on the back of the card and requested a CLI to $50,000. The CSR took my info and transferred me to an analyst. The analyst told me that her approval authority only went to $35,000, and gave me the choice to have her process a request of that amount, or refer the entire requested amount to a senior analyst;

 

- I got pretty easy "yeses" when I requested CLIs to $35,000 on my Citi Hilton HHonors Reserve card, and CLIs right after approval when I called for recon on my B of A Privileges and my Fidelity Amex (I later shuffled these limits around, and across a total of three B of A cards);

 

- I added "Pay Over Time" to my Amex Gold (because they offered me 10,000 MR points to do so). The POT limit that was assigned was $35,000, even though the card has more spending power.

Edited by TrevorHere
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I don't think the following are coincidences about the $35,000 figure when it comes to credit cards. The question I have is WHY is this number significant? Is this perhaps the limit past which FICO no longer factors the card's balance and/or limit when it considers your utilization? Any other thoughts or theories?

 

- Conventional wisdom suggests that when calling the GECRB backdoor number you should "aim high", and ask for $25,000, knowing that they'll counter if you only qualify for a lower amount. I called recently and asked for $35,000 on my PayPal Extras MC, and was approved by the analyst who picked up the phone when I called the normal backdoor number (i.e., I didn't call the EO, or get transferred to a senior analyst when I called the backdoor number);

 

- A few months ago I went online and requested a CLI on my $20,000 PenFed Platinum Rewards Visa. I got a conditional approval for $23,000, and had to submit pay stubs. I submitted them, and without any further action on my part they approved me for $35,000;

 

- Last week I called Wells Fargo to request a CLI on my hysterically funny $1,000 Cash Back Visa. I called the number on the back of the card and requested a CLI to $50,000. The CSR took my info and transferred me to an analyst. The analyst told me that her approval authority only went to $35,000, and gave me the choice to have her process a request of that amount, or refer the entire requested amount to a senior analyst;

 

- I got pretty easy "yeses" when I requested CLIs to $35,000 on my Citi Hilton HHonors Reserve card, and CLIs right after approval when I called for recon on my B of A Privileges and my Fidelity Amex (I later shuffled these limits around, and across a total of three B of A cards);

 

- I added "Pay Over Time" to my Amex Gold (because they offered me 10,000 MR points to do so). The POT limit that was assigned was $35,000, even though the card has more spending power.

 

 

 

 

You are likely right. Amex's has a 35k POT limit across their charge cards even the high end. If you look at the Centurion Card is also has a 35k POT limit. Amex securitizes their CC debts, bundles them, and sells them as debt instruments to qualified investors/institutions. Doing this gives them access to more cash to fund their cash flow needs. I have also seen the 35k limit specified in Amex SEC filings on these so it may well be an industry practice.

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I don't think the following are coincidences about the $35,000 figure when it comes to credit cards. The question I have is WHY is this number significant? Is this perhaps the limit past which FICO no longer factors the card's balance and/or limit when it considers your utilization? Any other thoughts or theories?

 

- Conventional wisdom suggests that when calling the GECRB backdoor number you should "aim high", and ask for $25,000, knowing that they'll counter if you only qualify for a lower amount. I called recently and asked for $35,000 on my PayPal Extras MC, and was approved by the analyst who picked up the phone when I called the normal backdoor number (i.e., I didn't call the EO, or get transferred to a senior analyst when I called the backdoor number);

 

- A few months ago I went online and requested a CLI on my $20,000 PenFed Platinum Rewards Visa. I got a conditional approval for $23,000, and had to submit pay stubs. I submitted them, and without any further action on my part they approved me for $35,000;

 

- Last week I called Wells Fargo to request a CLI on my hysterically funny $1,000 Cash Back Visa. I called the number on the back of the card and requested a CLI to $50,000. The CSR took my info and transferred me to an analyst. The analyst told me that her approval authority only went to $35,000, and gave me the choice to have her process a request of that amount, or refer the entire requested amount to a senior analyst;

 

- I got pretty easy "yeses" when I requested CLIs to $35,000 on my Citi Hilton HHonors Reserve card, and CLIs right after approval when I called for recon on my B of A Privileges and my Fidelity Amex (I later shuffled these limits around, and across a total of three B of A cards);

 

- I added "Pay Over Time" to my Amex Gold (because they offered me 10,000 MR points to do so). The POT limit that was assigned was $35,000, even though the card has more spending power.

 

 

 

 

You are likely right. Amex's has a 35k POT limit across their charge cards even the high end. If you look at the Centurion Card is also has a 35k POT limit. Amex securitizes their CC debts, bundles them, and sells them as debt instruments to qualified investors/institutions. Doing this gives them access to more cash to fund their cash flow needs. I have also seen the 35k limit specified in Amex SEC filings on these so it may well be an industry practice.

 

 

I think this is the magic $35,000 answer. It always boils down to money (or in this case, securitization)... the same way that $417,000 is the magic number for conforming mortgage loans in most areas.

Edited by cv91915
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I now have a Chase Freedom with a 35,000 limit, so you're saying that the limit won't be reported? Or are you saying that it won't be included in total credit available?

 

I didn't say anything about a limit not being reported.

 

I have read in more than one place that for a credit card with a limit over $X, FICO ignores the tradeline when considering your utilization. I was speculating that X might be $35,000. So far, no takers on that theory, at least in this thread. :D

Edited by cv91915
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I now have a Chase Freedom with a 35,000 limit, so you're saying that the limit won't be reported? Or are you saying that it won't be included in total credit available?

 

I didn't say anything about a limit not being reported.

 

I have read in more than one place that for a credit card with a limit over $X, FICO ignores the tradeline when considering your utilization. I was speculating that X might be $35,000. So far, no takers on that theory, at least in this thread. :D

 

 

I've heard that about FICO too but I'm not sure if it's 35k. I've never run across anything I'd consider authoritative.

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I now have a Chase Freedom with a 35,000 limit, so you're saying that the limit won't be reported? Or are you saying that it won't be included in total credit available?

 

I didn't say anything about a limit not being reported.

 

I have read in more than one place that for a credit card with a limit over $X, FICO ignores the tradeline when considering your utilization. I was speculating that X might be $35,000. So far, no takers on that theory, at least in this thread. :D

 

 

I've heard that about FICO too but I'm not sure if it's 35k. I've never run across anything I'd consider authoritative.

 

 

I'm not convinced that $35,000 is that number either... but I was looking to explain the $35,000 syndrome - which I believe you did. :D

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I didn't say anything about a limit not being reported.

 

I have read in more than one place that for a credit card with a limit over $X, FICO ignores the tradeline when considering your utilization. I was speculating that X might be $35,000. So far, no takers on that theory, at least in this thread. :D

 

I see. I'd run it up to the maximum and see what happens to the score, but I'm not that brave.

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I didn't say anything about a limit not being reported.

 

I have read in more than one place that for a credit card with a limit over $X, FICO ignores the tradeline when considering your utilization. I was speculating that X might be $35,000. So far, no takers on that theory, at least in this thread. :D

 

I see. I'd run it up to the maximum and see what happens to the score, but I'm not that brave.

 

 

I'm still working on the minimum spend for my new CSP ($30,000 limit) so I'm not going there this week. :P

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BI I et moi did a lot of experimenting,

 

and >$40k cards are the ones not included in FICO utilization.

 

Nothing like experimental evidence!

 

BTW, did you ever test whether balances on >40k cards count. It would be cool, if expensive, to let a 44k balance on a 45k card report to see if it affected FICO util.

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