Question
I recently cancelled my US Airways Gold Visa card because of the all of the problems US Air was facing...I decided to go with the Visa Signature Continental card from Chase. I appled for the card over the phone. A few weeks later I received my Signature card and noticed that the credit limit was a mere $5,000. The problem with this is that I had a limit of over $50,000 with my US Air Visa and I am also an AMEX Centurion Cardholder.
I called Visa and explained my situation. I asked them to raise my credit limit as I had a flawless credit history and was a current AMEX Centurion as well. The person on the phone was clueless and transferred me to a manager. The manager said there was nothing he could do, and I would have to stay with the limit of $5,000. I told him to go ahead and cancel my card if I couldn't get a raise on my limit. He said to cut up the card and that was the end of it.
Has anyone else had a problem similar to this with Visa Signature or have any ideas as to why this happened? Thanks!
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Itīs not the banks fault.
1. Donīt you think itīs natural, that a bank wants to make their own experiences with a new customer and to see if he is in good standing, before rising his credit limit up to 50k or higher?!
2. Did you start with a 50K-limit on your US-Air Visa from the first day on?
3. Having an Amex-Card (whatever colour it might be) doesnīt mean much today.
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Originally posted by axel1:
Itīs not the banks fault.
1. Donīt you think itīs natural, that a bank wants to make their own experiences with a new customer and to see if he is in good standing, before rising his credit limit up to 50k or higher?!
2. Did you start with a 50K-limit on your US-Air Visa from the first day on?
3. Having an Amex-Card (whatever colour it might be) doesnīt mean much today.
A black amex card is not got so easy after all.
And the credit limit in D is basically based on your income (and good Schufa standings) - in the US basically based on credit reports (similiar to SChufa, but much more detail).
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Then again, when you deal with Chase...
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The reason I got the "Signature" Card was because it said it allowed for a much higher limit for people with good credit, and seeing as how I put $400K+ a year on my centurion card and $100K+ a year on my US Air card, (and pay in full after every month) I would think they would see this as an excellent customer with excellent credit would make them more money by allowing them a higher limit to put additional charges on the card...
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paying every month in FULL is NOT what the CC banks want you to do.Yes, they want you to charge but they make their $$$$ with those rip-off interest rates. So someone like you or me who uses the cards and pays in full is NOT really a Great customer as far as the issuing bank is concerned. They rather have someone pay the min due and then charge those double-digit % rates for the rest.
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Chase gave you a card because they had to. One look at your credit report and they could see that they couldn't deny you but also would never make a dime by providing you with an airline miles earning card.
If you formaly apply in writing for a credit line increase accompanied with copies of tax returns and banking/investment accounts, they'll give you an increase because they "have" to.
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Originally posted by craz:
paying every month in FULL is NOT what the CC banks want you to do.Yes, they want you to charge but they make their $$$$ with those rip-off interest rates. So someone like you or me who uses the cards and pays in full is NOT really a Great customer as far as the issuing bank is concerned. They rather have someone pay the min due and then charge those double-digit % rates for the rest.
Shows how short sighted those guys are.
Charge $100K / year and pay in full = $2K for the bank.
Maintain $5K balance @ 20% for the year = $1.2K for the bank.
Who is the better customer?
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Originally posted by eMailman:
Shows how short sighted those guys are.
Charge $100K / year and pay in full = $2K for the bank.
Maintain $5K balance @ 20% for the year = $1.2K for the bank.
Who is the better customer?
I have to agree there, especially during the tough economic times like these...record people are declaring bankruptcies.
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That something I always wondered about too.
But you forget this:
Charge $100K / year and pay in full = $2K for the bank. For that year only
Maintain $5K balance @ 20% for the year = $1.2K for the bank. Year after year, until you actually pay it off.
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But you forget this -
Declare bankruptcy and bank gets $0. Not even the balance repaid.
Much less likely to happen with someone who has a history of not carrying a balance.
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100K $ => 2K income
100K$=> 100K miles=> 1.5-2K expenditure
net -> 0-500$
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Originally posted by cooltyler:
I put $400K+ a year on my centurion card and $100K+ a year on my US Air card, (and pay in full after every month)
Wow! I bet you have a big d1ck too! http://www.flyertalk.com/forum/wink.gif
Lots of people burn their company's money at an incredible rate, it doesn't mean that it is sustainable.
The bank is giving you a reality check. If you ran a bank, would you lend money to someone who already has that much credit available? Nope, didn't think so.
All the customer has to do is max out all his/her cards and then declare bankruptcy. The lender loses big time.
It does make me laugh my ar5e off that you can get a VISA Signature card with such a pathetic credit limit though.
Why do you want another credit card if you already have these other cards anyway? ???
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We aren't spending the company's money...We are purchasing products for resale. The reason is that not all companies take AMEX, and I needed a Visa card to give to the companies that didn't accept AMEX...
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Whether you spend $1.00 or $1,000,000 on your Visa/MC that earns points/miles, doesn't make the issuer a dime unless you carry a balance. By the time the issuer pays their staff, overhead, advertizing, buys the points/miles and pays interest on the money they borrow from customers/Fed to fund your receiveable, they're not making a dime. If everyone paid their credit card bill in full every month, within a year there would be no Visa/Mastercard or they would have charge the merchant fees similar to AmEx/Diners used to charge. It's all those fools who are paying those loan sharking interest rates on their balances that in fact are subsidizing people like you and me.
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Originally posted by notsosmart:
Charge $100K / year and pay in full = $2K for the bank. For that year only
"For that year only" is not necessarily true. If you charge $100K/yr., the bank gets that money every year.
Note: Several comments on this thread have the credit limit process backwards. Your credit limits do not increase when you charge a lot and acquire more cards. Your limits decrease. That's why, for example, you're likely to get a large limit on your first card, rather than your fifth card.
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Originally posted by cooltyler:
A few weeks later I received my Signature card and noticed that the credit limit was a mere $5,000. The problem with this is that I had a limit of over $50,000 with my US Air Visa and I am also an AMEX Centurion Cardholder.
The manager said there was nothing he could do, and I would have to stay with the limit of $5,000. I told him to go ahead and cancel my card if I couldn't get a raise on my limit. He said to cut up the card and that was the end of it.
LOL!
Same thing happened to me! I have a $65,000 limit on a FF card. I apply to First USA United, they give me $5000...but first they sent me an MSN Titanium card. WTF?! I promptly cancelled as this POS can't handle a month's worth of expenses.....all this for a hit on my credit report no less!
FIRST USA & CHASE = P.O.S.!....to the 5th power cubed....always has....always will...I hope they go out Enron style! http://www.flyertalk.com/forum/smile.gif
Banks are populated with people that barely finished middle school. Don't count on these geniuses. They just follow the razor-sharp 80 IQ of their boss.....(No offense to the middle or High School people of Euro or Asian countries--you guys are like our university educated--at the Masters level! LOL! http://www.flyertalk.com/forum/wink.gif)
[This message has been edited by Wolverine (edited 11-12-2002).]
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[This message has been edited by Wolverine (edited 11-12-2002).]