Quote:
Originally posted by pwd72s
I can understand that the more you have, the more willing they are to lend to you...but how do they know what I have??? I never told "them"!
|
Your credit limits have nothing to do with what you "have" -- it has to do with your past credit history, mostly your borrowing and repayment records.
I knew an older lady with considerable wealth, who had just paid for everything on a cash basis for most of her life, never building up any credit record. She tried to get a credit card, and it was almost impossible -- even from a bank where she had CDs in the six figures! That bank finally did issue her a credit card (with a $5000 credit limit) and acted like they were doing her some sort of "special favor"!
Most of the bank clerks involved in granting credit have virtually no understanding of wealth, or what is behind "credit risk" -- they just know how to look at your credit score and compare that to the tables they have telling them how much you can afford to borrow.