I was just offered a gold visa card at my bank this week and was offered a limit of 14k, the minimum allowed being 5k. Does having a higher limit help with your credit rating in the future, for mortgages etc? I'll never rack up more than 5k on the card, so is it worth it for me to ask for the upper limit?
2007-04-17 10:28:20 · 8 answers · asked by Sam Y 3 in Business & Finance ➔ Credit
Yes. High limits on cards improves your rating. Low balances against those limits will further improve your scores. So definitely ask for the highest limit they'll give you. They might not do all of it at once, but eventually they'll probably raise it up if they don't start it high to begin with.
2007-04-17 10:41:59 · answer #1 · answered by Yanswersmonitorsarenazis 5 · 2⤊ 1⤋
It doesn't really effect your credit, unless you're carrying mid to high balances on that card or other cards. Utilization ratio (balance vs limit) does play a big part (up to 30%) of your credit score. You want to use less than 25-30% of the limit. So if you think you'll quickly rack up 3-5K on the card, it would be better to go with the higher limit.
However banks DO consider that you could go pretty far into debt...but this doesn't effect your SCORE.
2007-04-17 10:34:04 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Orchard Lake Platinum MasterCard. Being a percentage rate on this is higher, running around 14%. There is an annual fee for this between 39 and $59 but it did not list any sort of program fee or participation fee as with the card mentioned above. They do have periodic credit limit increases so as you make on-time payments and continue to build your bad credit towards good credit, you will be rewarded with a higher limit on your credit card. This is another example of how to apply for bad card credit credit online. apply online for a best credit card at:http://www.credit-card-gallery.com/American_Express.html
2007-04-17 22:43:15 · answer #3 · answered by felix hallam 2 · 0⤊ 0⤋
Yanswers is correct - high limits will improve your ratings, etc.
Also, available credit is NOT debt. Never has been, never will be.
If you prove that you are trustworthy with high limits, you are worth far more to a lender than someone who has no limits or very low limits.
As for K Chick, well, that comes from a person who admitted in another post that she had never heard of someone being sued for a credit card debt - 'nuff said.
2007-04-17 12:04:34 · answer #4 · answered by echo 7 · 1⤊ 0⤋
You guys are wrong. Very high limit can lower your credit score. Too much credit is not always good. Because lenders look at it as a sign that you are ready to borrow a lot in the near future.
It's a gray area. Having a lot without having too much is the key. If you order your credit info through Private Source, It explains this is in more detail. That's where I got this info from. I study my credit closely so I know.
And I can't believe the mortgage banker and the other expert above didn't know this.
2007-04-17 11:06:26 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Doesnt make a difference. What matters is that your balances on your accounts are not high, meaning you have more available credit than debt.
And it matters how you pay these account...as in no late payment, etc.
Good Luck
2007-04-17 10:41:03 · answer #6 · answered by smile4cobra 3 · 0⤊ 1⤋
Amanda is correct.
2007-04-17 10:41:52 · answer #7 · answered by ? 7 · 0⤊ 0⤋
It will only help if you don't have it max out.
2007-04-17 10:51:24 · answer #8 · answered by Peaches 2 · 1⤊ 0⤋