High Limit Credit Cards & How Credit Limits Affects Your Credit Score.

High Limit Credit Cards & How Credit Limits Affects Your credit Score

– High Limit Credit Cards –

High Limit Credit Cards: Credit card limits may seem like an inconvenience at times but, ultimately, a card’s upper limit is established to not only protect the credit card issuer but to protect the consumer from getting in over his or her head as well.

Most Expensive Credit Cards

High credit limits can be helpful if you regularly make large purchases or if you’re planning a one-time significant expense, such as a home renovation. You can use the card to earn rewards and take advantage of a 0% introductory annual percentage rate offer to pay down the balance without accruing interest.

What are High Limit Credit Cards

A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). You’re more likely to have a higher credit limit if you have good or excellent credit.

A high-limit credit card can help you improve your credit score since it raises your overall available credit and can lower your credit utilization rate. It can also be helpful to cardholders who have high monthly expenses or are looking to purchase a big-ticket item. If you do have a high credit limit, just make sure that you spend within your means and avoid charging more than you can afford.

How to Get High Limit Credit Cards

While there’s no way to know exactly what credit limit you’ll receive before you apply, some cards tend to offer higher limits than others. Visa and Mastercard, for instance, have three tiers of card offerings.

Be sure to read closely before applying for a credit card so you know what to expect if they do only offer a minimum. You won’t know your exact credit limit until your application is final, and credit limits vary depending on your specific credit score and income.

If you end up with a card that has a lower credit limit than you wanted, you can always ask for a credit limit increase by speaking to your issuer over the phone or making a request online. Some issuers will automatically increase your credit limit once you’ve made consecutive on-time payments after the first few months.

How much Credit can I get?

When you apply for a credit card, the provider will let you know the credit limit. They decide how much to offer by looking at various factors, such as your application form, information from your credit report, and the provider’s own data (e.g. if you’re already a customer). The information they consider typically includes:

  • Your credit history – e.g. if you’ve been a reliable borrower previously, have a record of missed or late payments, or if you’ve never borrowed before
  • Your available income – how much money you have left after paying living costs (e.g. bills, rent, groceries)
  • Their own lending policy – credit limits can vary between card providers and different deals
  • Your existing credit commitments – e.g. debt on other credit cards, loans, mortgages or overdrafts
  • Your credit limits elsewhere – how much you can borrow on your other cards if you have any

What are High or Good Credit Cards Limit?

What are High or Good credit cards limit?

Not everyone has access to the same credit card deals, and a premium card will usually have a higher credit limit than a credit builder credit card (for someone with a low credit score), simply because the lender believes they’re likely to repay a higher amount.

So, a good credit card limit is one that strikes a sensible balance between your needs and your financial ability. Always remember that money spent on a credit card is borrowed, and you must pay it back.

How can Credit Limits affect my Credit Score?

You don’t have one, universal score – each lender may use a different method to calculate it. So, how credit limits affect your score depends on the lender’s preference. For example, a large amount of available credit may make lenders think you’re too reliant on borrowing – they may even see it as potential debt.

On the other hand, some lenders may view high limits in a positive light, as it shows that another lender trusts you to repay a large amount. Lenders may also take into account what proportion of your ‘revolving’ credit (usually credit and store cards) you’re regularly using. For example, if you’re maxing out your credit card limit each month, this may count against you.

Credit Cards with the High Credit Limits

1. Chase Sapphire Preferred® Card

  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals, and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro (Purchases) Intro (Transfers) Regular APR Annual Fee Credit Needed
N/A N/A 15.99% – 22.99% Variable $95 Good/Excellent

Of course, you’ll need to keep in mind that credit limits are determined primarily by your creditworthiness, based on the information in your credit report, as well as your income level.

2. Capital One® Venture® Rewards Credit Card

Intro (Purchases) Intro (Transfers) Regular APR Annual Fee Credit Needed
N/A .  N/A N/A  . N/A N/A

While your credit limit will depend on your individual creditworthiness, most reviewers indicate receiving lower limits than the highest reported of $50,000. Several reviewers report limits around $30,000, while the average limit seems to be between $5,000 and $10,000.

3. Discover it® Balance Transfer

Intro (Purchases) Intro (Transfers) Regular APR Annual Fee Credit Needed
N/A N/A N/A N/A N/A

Of course, as with any credit product, the highest limits won’t be available to every applicant. Reviews indicate the average new Discover it® applicant is significantly more likely to see a credit limit of $3,000 to $10,000 than one over $20,000.

4. Chase Freedom Unlimited®

Chase Freedom Unlimited®

  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn unlimited 5% cashback on all purchases.
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 14.99 – 23.74%.
  • 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5
  • No annual fee
  • No minimum to redeem for cashback
Intro (Purchases) Intro (Transfers) Regular APR Annual Fee Credit Needed
0% Intro APR on Purchases 15 months 0% Intro APR on Balance Transfers 15 months 14.99% – 23.74% Variable $0 Good/Excellent

5. Chase Freedom®

  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cashback on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
  • Unlimited 1% cashback on all other purchases – it’s automatic
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 14.99 – 23.74%.
  • 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5.
  • No annual fee
Intro (Purchases) Intro (Transfers) Regular APR Annual Fee Credit Needed
0% Intro APR on Purchases 15 months 0% Intro APR on Balance Transfers 15 months 14.99% – 23.74% Variable $0 Good/Excellent

Offering nearly identical perks and benefits, the two cards are differentiated primarily by the way cardholders earn cashback. Specifically, Chase Freedom® users enjoy 1% unlimited cash back on every purchase and 5% bonus cash back in specific categories that change each quarter.

In contrast, Chase Freedom Unlimited® offers an unlimited 1.5% cash back on every purchase. Although the Chase Freedom® and Chase Freedom Unlimited® cards may offer limits over $20,000 to well-qualified applicants, the average cardholder is much more likely to receive a credit limit between $3,000 and $5,000 than one over $10,000

We hope this article was useful and educative, do well to share these messages with friends and loved ones. If you have a question, kindly drop your comments below.

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