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Benefits of high Credit LImits?

Established Contributor

Benefits of high Credit LImits?

Apart from helping one's utilization number, what are the benefits of having high credit limits?  Skip the obvious like "one can make a big purchase."

 

 


My Starting Score: EQ: 691 (11/30/11) TU98: 726 (11/30/11)
My Current Score: EQ: 779 (04/22/13) TU08: 835 (06/03/13)
DW Starting Score: EQ: 742 (03/02/12) TU98: 748 (03/02/12)
DW Current Score: EQ: 784 (03/11/13) TU08: 775 (06/03/13)
Message 1 of 21
20 REPLIES
New Contributor

Re: Benefits of high Credit LImits?

I would say that unlike my situation where I have to pay my card off several times a month, so convience.

Cap1 500 Chase Freedom 5K Discover More 1.5K Amex Zync NPSL AMEX Hilton HHonors 2K
Utilization 7%
Tu Fico: 718 ( Disover More App 4/26/12)
Exp Fico 707 (Amex Pull 4/28/12)
Equifax Fico 681 (Chase 4/26/12 Pull)
Message 2 of 21
Contributor

Re: Benefits of high Credit LImits?

There was just a thread about this very thing. If I recall the top 2 reasons were utilization and convenience. Depending on where you are in your credit journey, having higher limits will possibly afford you the chance to get even higher limit cards from other banks. You are viewed as less of a risk of other banks are exrending you large lines of credit, to an extent, obviously.

*USAA WORLD MC 18k* *USAA VISA 12k* *AMEX BCE 10k* *DISCOVER IT 15k* *AMEX ZYNC* *B of A SIGNATURE CASH 15k* *NAVY FEDERAL PLATINUM 20k* *CITI DOUBLE CASH 15k* *Veridian CU 14k* *Barclays Apple 12.5k*

Message 3 of 21
Super Contributor

Re: Benefits of high Credit LImits?

Bragging rites.  

 

Other then helping lower util for those who like to revolve balances or use thier CC as an emergency fund or  to be able to make a major purchases, I don't see any benefit have having a large CL.

 

IMHO other lenders don't care about your other CCs CLs,  unless you are using most of it.

10/17/2017 FICO: EQ 829 TU 830 EX 826
Message 4 of 21
Valued Contributor

Re: Benefits of high Credit LImits?


marty56 wrote:

Bragging rites.  

 

Other then helping lower util for those who like to revolve balances or use thier CC as an emergency fund or  to be able to make a major purchases, I don't see any benefit have having a large CL.

 

IMHO other lenders don't care about your other CCs CLs,  unless you are using most of it.


 

I think other lender DO care about the other CL's on your file. I have seen people denied CLI's because they did not have any "other" CL's in that range.


Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 844(9/15) EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 (9/15)EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
Hyatt Visa Sig ($23K), Amex BCP (24.8K), BofA Travel Rew Sig (22.5K), B&N World MC (22.3K), Amex RP Gold (NPSL w/ S&T), Cash+ Sig (20K),United Mil+ExpSig (16.3K), FNBO Visa (13.1K), Hilton Surpass (10K), Freedom Visa Sig (8.6K), Disc It (16.4K), Citi Dia Pref MC (3.7K),Sam's MC (10K), Wally (7.5K), JCP(5.3K), Costco (2K)
Message 5 of 21
Moderator

Re: Benefits of high Credit LImits?


crunching_numbers wrote:

marty56 wrote:

Bragging rites.  

 

Other then helping lower util for those who like to revolve balances or use thier CC as an emergency fund or  to be able to make a major purchases, I don't see any benefit have having a large CL.

 

IMHO other lenders don't care about your other CCs CLs,  unless you are using most of it.


 

I think other lender DO care about the other CL's on your file. I have seen people denied CLI's because they did not have any "other" CL's in that range.


Unless you're already using all the credit you have available anyway, why should you need a CLI?  That falls under the convenience factor, not having to pay multiple times a month being the biggest one.

 

Yeah, there's certain cards (Visa Signature ones, the CSP for example) where you may be excluded if you're sitting with a bunch of toy limits, but those cards are pretty few and far between.  Also, I would strongly suspect that many folks who had been denied for CLI's for that reason, probably had some other underlying reasons which weren't shared with them, or weren't shared with us.

 

The entire forum has to be taken with a little bit of a grain of salt sometimes with lender responses: our actions are easily three standard deviations outside normal credit application and use.  

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Message 6 of 21
Established Contributor

Re: Benefits of high Credit LImits?

Why do people with Signature or World cards request limit increases? Other than uti I cant find a reason. Chase just let me charge 3x over limit without so much as a phone call or email. 

Message 7 of 21
Established Contributor

Re: Benefits of high Credit LImits?

The ability to make decent size purchases while quite possibly staying below 30% usage on the card that's being used.Smiley Tongue


Starting Score: 722
Current Score: Now 687 what the hockey sticks...from a 784 (Aug 12 EX 751 EQ Fico)
Goal Score: 800

If your outGo is more than your INcome than your UpKeep will become your downFALL.

Take the FICO Fitness Challenge


Message 8 of 21
Valued Contributor

Re: Benefits of high Credit LImits?


Revelate wrote:

crunching_numbers wrote:

marty56 wrote:

Bragging rites.  

 

Other then helping lower util for those who like to revolve balances or use thier CC as an emergency fund or  to be able to make a major purchases, I don't see any benefit have having a large CL.

 

IMHO other lenders don't care about your other CCs CLs,  unless you are using most of it.


 

I think other lender DO care about the other CL's on your file. I have seen people denied CLI's because they did not have any "other" CL's in that range.


Unless you're already using all the credit you have available anyway, why should you need a CLI?  That falls under the convenience factor, not having to pay multiple times a month being the biggest one.

 

Yeah, there's certain cards (Visa Signature ones, the CSP for example) where you may be excluded if you're sitting with a bunch of toy limits, but those cards are pretty few and far between.  Also, I would strongly suspect that many folks who had been denied for CLI's for that reason, probably had some other underlying reasons which weren't shared with them, or weren't shared with us.

 

The entire forum has to be taken with a little bit of a grain of salt sometimes with lender responses: our actions are easily three standard deviations outside normal credit application and use.  

 


If you come close to doing tht you wont get a prime lender to give credit to buy a piece of toast. Maxing out a single card is hit on your FICO,  maxing out all your cards is a death sentence, note that to lenders  maxing out your card is a balance of more than 80% of your availble credit. 

 

if you have a $1000 card and want to treat a couple of friends to a dinner out at a nice resturant that $600 charge can  take a real chunk out of your FICO score despite the fact that you PIF the next morning the day your statement cuts. 

Cards: Chase Southwest 20k & CSR 10k & CSP 10k & Freedom 6.6k & Amtrak/Freedom 4.6k, FNBO DISC 25.1k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 10k, Paypal Extras MC 7.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 9k, Discover IT 16k and a nice stack of store cards.
Last APP/HP 5/15/2017 Marcus Loan. 30k
Message 9 of 21
Regular Contributor

Re: Benefits of high Credit LImits?

For me its security and convenience. Although I generally have the cash on hand, i like to put whole vacations on a card and pay it off after I get home and reconcile the receipts. Another advantages along these lines is that it allows me to keep all vacation expenses in one place to help plan and save for the next vacation.

 

For security, I find it comforting to know that if something drastic and/or expensive happens while away from home, I can handle it on the spot and work it out later.

Message 10 of 21