Overhaulin'

Why would Capital One give me such a low spending limit?

Alright, now I'm no newbie to credit. I may be 22, but at my last check, I had a credit rating of 750. I have a car loan in my name that has never missed a payment. I have a Best Buy credit account that I have never missed a payment on. I've opened a credit account for mine and my wife's engagement/wedding bands and that was paid off with no late payments. My credit account for my Best Buy card has a spending limit of $2,500. The credit account for the rings had a limit of $1,100. I applied for a Capital One Journey card - which gives people with little to no credit a chance to build it (I only applied because I was denied twice for a Target card). My question is, is why would Capital One give me such a crappy limit? Is it because of the card? I just paid it off today and I don't think I'm going to use it much (besides gas a couple of times just to keep it open). I forgot to add that the Capital One spending limit is $500.

Public Comments

1. In new credit, they look at your total credit limit and your income. Credit card companies have reduced their credit lines in general in the last year or so mostly because of new laws about what they can charge customers. Credit is actually a devil. You need it to buy a house, but if you're smart you'll keep a zero balance on as much debt as possible. Interest is where they make their money. I keep cards only for the rebates. The only web site or company to get a free annual report from all 3 agencies is https://www.annualcreditreport.com/cra/index.jsp Everyone else is trying to charge you something. That web site site is US Government approved. They do not give your score. Just all the details. You can check whether there is bad information on it.
2. most (i'm guessing all) credit card companys have guide lines and categories for ages, credit, ect. to be denied or establish credit limit. Also, time with the company and how you pay on payments will determine if and when your limit will be increased, decreased or terminated.