The Magic $35,000 Figure

[cv91915]

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 March 4, 2014 by TrevorHere
Merged topics

[BobWang]

35 is the new 25?

[cv91915]

Duplicate.

Edited March 4, 2014 by TrevorHere
Duplicate

[Cappy]

Are you rich?

[cputrwz]

What happened to the other thread? I liked Bob's "is 35 the new 25" comment.

[Guest]

Are you rich?

 

Dude, did you see his post about the new Benz? That, plus content of most other posts.. I think he is.

[BobWang]

[Guest]

I like it when you said "25 is soo 2009"

[cv91915]

What happened to the other thread? I liked Bob's "is 35 the new 25" comment.

 

The other thread was a dog's breakfast.

[cputrwz]

Well to a dog that would be super... have the other one deleted then or merged...cause now we're getting posts in both.

[BobWang]

[shifter]

I think 35k is just your magic number.

 

I've had no such experiences.

[nbipbm]

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?

[cashnocredit]

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.

[cv91915]

 

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 March 4, 2014 by cv91915

[cv91915]

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.

Edited March 4, 2014 by cv91915

[cashnocredit]

 

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.

 

 

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.

[cv91915]

 

 

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.

 

 

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.

[nbipbm]

 

 

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.

 

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

[cv91915]

 

 

 

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.

 

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.

[BobWang]

BI I et moi did a lot of experimenting,

 

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

[Blue Demp]

For the folks with such large limits, are your credit scores above 800?

[BobWang]

Not when I got them,

 

since one of the side effects of accumulating

 

large amounts of credit,

 

is a drop in FICO.

[BobWang]

In fact,

 

in the Golden Age of 2006,

 

I was down to 726.

[cashnocredit]

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.