What do credit card companies base your credit limit on?

Cold: What do credit card companies base your credit limit on?
I am pretty positive it’s based your salary.
And that they look at your credit reports to see credit limits in other cards.

My guess is no more than 25% of your salary in credit.
Any other guesses on how credit card companies figure out credit limits?
Credit card companies do not give out this information.

Answers and Views:

Answer by redhead
Instead of asking YA for “guesses” why don’t you just call some credit card companies and ask them so you will know for sure?

Answer by bdancer222
I seriously doubt if it’s based on a percentage of your salary.

Each company would have it’s own criteria based on your credit, income, and other factors. If you fall within criteria A, you get a $ 500 limit; criteria B, your get $ 1K. Most credit card companies have re-assessed that criteria and aren’t even offering huge limits even to highly qualified customers.

Answer by Credit Expert
Good question!

Your credit limit depends on your overall credit risk. Credit card companies do not want to allow you to charge a great deal on a credit card unless they are fairly sure you will pay it back responsibly. Believe it or not, they probably do not want to have to deal with collections and lawsuits either. There are a number of factors which contribute to your overall credit risk, such as your credit score and your income relative to your debt. Your credit score is essential because a credit card company can be confident in increasing a credit limit if you have proven capable of paying lower limits. Likewise, card companies want to see that you income can support your existing debt and credit lines before granting you additional credit.