Cryptocurrency Q&A
How do credit card companies determine credit limits?
How do credit card companies determine credit limits?
SeoulStyle
Thu Jan 23 2025
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6
answers
1409
I want to know how credit card companies set credit limits for their customers. What are the factors they consider when determining these limits?
6 answers
BlockchainBaronGuard
Sat Jan 25 2025
Credit history, which reflects past borrowing and repayment behavior, also plays a crucial role in determining the credit limit.
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Andrea
Sat Jan 25 2025
The debt-to-income ratio, which compares the borrower's monthly debt payments to their income, is another important consideration.
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KDramaCharm
Sat Jan 25 2025
A higher credit score coupled with a positive credit history may convince lenders to set a more generous credit limit.
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CryptoQueen
Sat Jan 25 2025
The credit limit assigned to an individual is often influenced by several factors.
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Daniele
Sat Jan 25 2025
Credit utilization, or the percentage of available credit being used, is another factor that lenders take into account when setting a credit limit.
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