Credit limits - an odd correlation 2 September 2022 at 9:00AM in Credit cards 4 replies 291 views

blue.peter

A long time ago, I noticed that the credit limits I get on MasterCards (and Access before that) are significntly lower than those on my Visas. This has been the case for over 40 years. In recent years, this effect has been getting increasingly pronounced: the sum of the credit limits on two of my MasterCards (taken out in 2020 and 2022) is less than that on one of my Visa cards (taken out in 2020). The sum of my three MasterCard credit limits is less than 80% of the sum of the limits on my two Visas. In years gone by, it used to be the case that the limit I had on one MasterCard would be about 75% of that on one Visa.

NB: I'm reporting a rather odd correlation. I'm well aware that this does not imply causation. I do not suggest that there is an causal relationship. And it's very much based on my personal experience. It might not apply more generally. I expect that this is the cue for someone to say that their exprience is the opposite of mine.

(No, I don't need five credit cards. The reasons for some of them existing no longer apply, and I'm planning to drop two or three over the next few months. in particular, I don't intend to apply for a Pulse card following the ending of the NewDay/Amazon partnership.)

Ebe_Scrooge

I'm not sure if it's related, but I know that over the last couple of years a lot of my cards have changed from being Visa to Mastercard (same issuer, but when my old Visa card expired the replacement was a Mastercard).  If this is common across the industry, then I guess it might be a case of "there are more Mastercards being issued, so the limit on each one is lower".

Obviously each individual limit is based upon your personal circumstances/credit history/lender's criteria, but I wonder if it's just the increased usage of Mastercard nationally has a bearing?

blue.peter

Ebe_Scrooge said:

I wonder if it's just the increased usage of Mastercard nationally has a bearing?

it's possible that that would explain the increasing differential. However, it doesn't explain my consistent experience over several decades.

wiseonesomeofthetime

Looking at my collection, I have significantly more credit available to me on my two VISA credit cards than my three Mastercard credit cards combined.

So, similar experience as OP really then.

None carry a balance as, when I do occasionally use them, they are all PAID IN FULL, so that doesn't seem to be a factor.

Of the five, only one has had a credit limit increase during their lifetime, that being a VISA card.

blue.peter

wiseonesomeofthetime said:

None carry a balance as, when I do occasionally use them, they are all PAID IN FULL, so that doesn't seem to be a factor.

Of the five, only one has had a credit limit increase during their lifetime, that being a VISA card.

Also similar to me. Mine are also paid off in full every month, and the only one to have had its limit increased is one of the Visas.

(On the subject of increases, when I had an American Express card, that started off with a perfectly useful limit, but was increased to something that I consider ridiculously high within a couple of years. Yes, I could have refused either - or both - of the increases, but I didn't. I just didn't spend more than I could pay off.)