How do they decide credit limits for your first credit card?

Credit and mortgage advice Forums Consumer Credit Credit Cards How do they decide credit limits for your first credit card?

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    • #209996
      Anonymous
      Inactive

      I just applied for my first credit card ever yesterday, and I am hoping to get a credit limit of at least $1,500. I have no credit history whatsoever, I don’t have to make a house payment, no dependents, and I make $12.10 an hour working 35-40 hours a week. Would all those factors contribute to a higher or lower credit limit, and do you think I’d be eligible for the $1,500 limit?



    • #281804
      Anonymous
      Inactive

      Every creditor is different. They look at your history and capacity to pay.

      If you don’t get what you want, use it for 6 months and pay it off every month, then call customer service and ask for a line increase. Keep asking every 6 – 12 months.

    • #323934
      Anonymous
      Inactive

      I work for state farm and its probably better to go with a coverage of like 50,000 dollars because you don’t ever know what you have what the value of it is until you have a claim. You may think that 25,000 is a LOT of money but trust me, there are things in your apartment that you didn’t know had value….Best go with 50,000. Save yourself!

    • #445078
      Anonymous
      Inactive

      I work for state farm and its probably better to go with a coverage of like 50,000 dollars because you don’t ever know what you have what the value of it is until you have a claim. You may think that 25,000 is a LOT of money but trust me, there are things in your apartment that you didn’t know had value….Best go with 50,000. Save yourself!

    • #323935
      Anonymous
      Inactive

      You already have your answer. Renter’s Insurance is 25k minimum.
      This is replacement value not just for your items but to help cover major damage to the apartment you might cause. If you accidentally set a hot pot and burn the counter-top that could cost thousands to replace. Just get the 25k

    • #445079
      Anonymous
      Inactive

      You already have your answer. Renter’s Insurance is 25k minimum.
      This is replacement value not just for your items but to help cover major damage to the apartment you might cause. If you accidentally set a hot pot and burn the counter-top that could cost thousands to replace. Just get the 25k

    • #323936
      Anonymous
      Inactive

      Allstate will offer a minimum of 15,000. The price should also be well under 100 dollars.

    • #445080
      Anonymous
      Inactive

      Allstate will offer a minimum of 15,000. The price should also be well under 100 dollars.

    • #323937
      Anonymous
      Inactive

      Go to an independent agent and have them quote it. That would be your best chance of finding someone who offers the smaller amount.

    • #445081
      Anonymous
      Inactive

      Go to an independent agent and have them quote it. That would be your best chance of finding someone who offers the smaller amount.

    • #323938
      Anonymous
      Inactive

      I don’t think you really want $ 10,000 of coverage. What you REALLY want, is to actually pay LESS in premium. After all, if a $ 10,000 policy costs $ 150, and a $ 25,000 policy costs $ 150, which will you buy?

      You can’t find an agent to sell you that $ 10,000 policy, because there isn’t any dollar savings, and it would be malpractice to sell you $ 10,000 at the same cost as $ 25,000. There would be a lawsuit if you had a claim for MORE than $ 10K of stuff.

      SO. The place to go, where you can insure your stuff down to $ 1,000, is your state FAIR plan. Their minimum premium is probably $ 125, AND, they don’t cover theft. As theft is the #1 claim on renters insurance, it’s probably quite a bit smarter to just get the $ 25K policy.

      Although I’m a bit surprised an agent hasn’t tried to explain this to you.

    • #445082
      Anonymous
      Inactive

      I don’t think you really want $ 10,000 of coverage. What you REALLY want, is to actually pay LESS in premium. After all, if a $ 10,000 policy costs $ 150, and a $ 25,000 policy costs $ 150, which will you buy?

      You can’t find an agent to sell you that $ 10,000 policy, because there isn’t any dollar savings, and it would be malpractice to sell you $ 10,000 at the same cost as $ 25,000. There would be a lawsuit if you had a claim for MORE than $ 10K of stuff.

      SO. The place to go, where you can insure your stuff down to $ 1,000, is your state FAIR plan. Their minimum premium is probably $ 125, AND, they don’t cover theft. As theft is the #1 claim on renters insurance, it’s probably quite a bit smarter to just get the $ 25K policy.

      Although I’m a bit surprised an agent hasn’t tried to explain this to you.

    • #323939
      Anonymous
      Inactive

      Shop around. We offer renters insurance for over ten companies. They all have different requirements. You have to find the right plan for you. And remember, it is always better to be over insured underinsured if you had to choose. I hope people never have to learn that.

    • #445083
      Anonymous
      Inactive

      Shop around. We offer renters insurance for over ten companies. They all have different requirements. You have to find the right plan for you. And remember, it is always better to be over insured underinsured if you had to choose. I hope people never have to learn that.

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