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UPDATES:
- Chase now offers credit card applicants to reallocate credit limits when applying online. This removes the need to call the reconsideration line after submitting the application.
When you apply and submit a Chase credit card application, Chase calculates your overall income and how much credit limit they are willing to give you based on your total income. In the past, you had to call Chase’s reconsideration line to move credits around to get approved. Fortunately, Chase now allows applicants to reallocate credit lines on their own online after applying for a new Chase credit card if the application cannot be approved because of the credit limits issue.
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| Photo Credit: Chase |
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Chase Credit Limit Rule
First, it helps to understand Chase’s rule regarding how they approve or deny a credit card applicant based on the credit limit.
You are not limited to the number of credit cards you can have with Chase, but Chase is more concerned about the total credit they give to you based solely on your overall income. In other words, you can have multiple credit cards with Chase, and each card has a credit line limit. Once you max out the total credit line limit that Chase gives you, they cannot approve you for a new credit card without moving the credit line from your existing card to your new card. This is one of the reasons why when you submit a new Chase application, it typically goes to pending and under review until your overall credit limit issue is resolved.
Thanks for applying. We need to review your application a little longer.
Chase Issues Credit Limit Up to 50% of Your Total Income
My income has increased significantly over the past couple of years in my personal situation. So when I applied for the Chase Sapphire Preferred Credit Card, I provided Chase with my new increased income, which triggered the instant approval on my application with Chase online.
There’s an unwritten rule that Chase would extend the credit line limit up to 50% of your total income. Chase considers your total income, not just your employment alone, but also other monetary income that you receive such as business, investment, rental income, etc. So add all that up and then divide it by 50%, and you’ll get the maximum credit limit that Chase is willing to give you across all your personal and business Chase credit cards.
For example:
- Your total annual income is $100,000.
- 50% of that amount is $50,000. That $50k is the maximum credit limit Chase will give you.
- If you have multiple credit cards with Chase, start adding the credit line on each Chase card (personal and business).
- If your total credit line exceeds $50,000, Chase will not approve you for their new credit card without asking you to move some of the credit limits from your existing card.
- Suppose your total credit line across your Chase credit cards is lower than $50,000. In that case, any new Chase credit card application is most likely approved instantly, provided that your credit history, etc., also meets Chase’s satisfaction.
Should You Consider Lowering Your Chase Credit Card Line Limit to Get Instant Approval For A New Chase Credit Card?
Suppose you are looking to apply for a new Chase credit card. It is essential to know that while Chase does not limit how many credit cards you have with them, they do consider the total credit line limit that they give you based on the overall income that you provide on the application. Some people consider lowering Chase’s credit card limit before applying for a new Chase card hoping for instant approval without dealing with reallocating Chase’s credit limit (more below).
There’s no quick Yes or No answer to this question. The total credit that Chase extends to you varies from person to person, based mainly on each individual’s overall income. It comes down to whether you want to go through the Chase credit limit reallocation to shift credits around or you want to be instantly approved after you submit a new application.
Lowering the credit limit with Chase is not that difficult. You simply contact Chase to do that, and you can request it whenever you want. On the other hand, if you want a higher credit line later on after lowering it, it may or may not be problematic down the road to request an increase with Chase afterward. But again, it all depends on your overall total income.
Chase Now Allows You to Reallocate Credit Limit When Applying For A New Chase Credit Card Online
The latest online application feature that Chase made available to consumers is the ability to reallocate credit lines on your own without having to call the reconsideration line after submitting a credit card application.
The way it works is that when you apply and submit a new Chase credit card, the Chase system will calculate your overall income information based on what you provided on the application. If the system determines that you have maxed out the credit lines that Chase is willing to give you, you will be presented with an option to reallocate existing credit lines from your other Chase cards to get approved for the new card.
