Easy To Get Credit Cards with High Limits
Having a big credit line is both convenient for you and very beneficial for your credit score. The explanation is simple – when you use less than a one third (or better about 25%) of your credit limit, your credit score is growing, while when you use nearly 100% of your credit line, the score is decreasing – this concept is called credit utilization ratio. Knowing that you can understand better that it will be easier to build a better credit with a high limit card. The problen here is that you already need to have a very good score to get such card.
Excellent credit score is the must
It goes without saying that in order to get a card with significant limit you need to have a good up to excellent credit score, but that is not the only requirement. Decision about your credit limit is made based on several factors including your credit score, your income and overall creditworthiness. The type of the credit card itself is also a factor – not all types of credit cards have equal credit limit boundaries, so competitive comparison needs to be done.
Try your current bank
While you are shopping around for a new credit card you should first visit your current bank or credit card company. Based on the history of your credit relationships with the institution you are more likely to get better terms and conditions from the same issuer. Another option is asking to increase a credit limit on your current card, but avoid doing it very often, because despite the fact that it generates a soft enquiry to your account, too many enquiries can potentially negatively affect your credit score.
Application is important
Dramatically important parts of your credit card application are your employment and salary information. Right after considering your credit score and current credit limit, credit card issuers evaluate your income and ability to pay higher bills. Our advice is to make sure that your household income is represented correctly and all sources of income are in mentioned in the application.
Total credit limit
While you are concerned about just your credit card limit, you should not forget about your total credit burden including mortgage payments, car and other loans. If you’ve just paid off a huge loan you have more chances to increase the limit on a card. But sometimes it doesn’t work – the trick is that when you close one of your credit accounts (e.g. a car loan) your debt utilization suddenly goes up – because at the end of your term you had a very low debt to credit limit ratio on the account (let’s say your full car loan amount was $30 000, the outstanding debt is $1000, the ratio is 1000/30000=1/30), and when you paid it off completely the loan amount is subtracted from your credit limit and your overall debt utilization goes up. Consider trying not to use more than 25%-30% of your credit line. A good credit line does not necessarily mean that you should use it in full.
No pre-set spending limit cards
Credit cards with no pre-set spending limits give you more freedom in spending. Actually it doesn’t give you a predefined credit line and you can only limit your spending yourself. It’s risky to have unlimited money spending opportunities, but if you are a responsible person such cards are rather convenient for you. Another big issue of such cards is that they can damage your credit score – because of the not predefined limit it can eventually show your debt utilization more than 100% – that can hit your credit score hard enough. On the other hand some of no pre-set spending limit cards are excluded from credit score calculation and some are reporting the highest historical balance on the account as a credit limit- in that case your credit score will not be damaged.
Rates, rates, rates
Looking for a greater credit limit, don’t forget about reasonable rates and look at all additional fees. Potential higher credit card balance means you might pay more interest. With more than average APR it can be just expensive.
Consider debt consolidation by transferring the balance from several credit cards to the one with lowest interest rate. That will be beneficial for you in terms of budgeting and economy and will be more convenient because all your balance will be on one card. Some customers even do a dangerous trick –they apply for a second credit card at the same bank and when they get it, they combine a credit limit by doing a balance transfer to the older credit card. It works if your application will not be declined and the warning is the same – too many enquires can damage a credit score.
Secured cards for fair credit score
If you need to have high credit limit but your score is rather poor, usually only a secured credit card will be easy enough for you to get. Credit limit will be equal or higher than a security deposit, so you can manage your credit line by putting more money on the deposit, on the other hand you will be able to improve your credit ranking at the same time by benefiting from a low debt utilization.
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