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Member
Posts: 12
Registered: ‎03-09-2008
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Need a better card with a higher limit

[ Edited ]

All,

 

I had terible credit a few years ago and began to clean things up to get ready for a home purchase.  i started with an orchard bank card that was just awful with a shameful $500 credit limit.... after i broke 600 from TU EX and EQ, I moved to capital one.  the credit limit was the same but there were no annual fees.  once i broke 650 from all three, my credit line jumped to $3000.  i never even noticed.  the bill is alway bpaid and i rarely carry a balance. 

 

I would like to move to an amex or discover card but would settle for a modest limit increase and/or some form of reward or incentive program.  my reports are clean with only a recent verzion {paid-off}(within 4 years) charge off that was disputed constantly... they consistantly inflated my bill so cancel my service and was hit with an ETF and was so pissed about it that i slowly paid it off, not because i didn't have the money... becuase i just hated what they had done. 

 

other that the verizon nonsense the only items on my credit are my mortgage, student loans, a sears card (that i keep because of the lenght it adds to my credit history... rarely if ever used), a paid off/never late car loan, and my cap one card.

 

what should i do?

ex:700+ tu:700+ eq:700+
Valued Contributor
Posts: 1,513
Registered: ‎01-05-2010
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Re: Need a better card with a higher limit

A higher credit limit in itself does not lead to a higher score, but a higher score leads to higher credit limits.

 

A lower util leads to a higher score. It doesn't matter if it's $1/$20 or $1,000/$20,000. The util is the same.

 

 

Are you living within your means?
Member
Posts: 12
Registered: ‎03-09-2008
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Re: Need a better card with a higher limit

you are right.  thats why i had to leave orchard bank.  i really could not use the card for any thing but buying soda or gas... anything else would have made it appear as though i was bad at managing the use f my credit because the limit was so low.   i like to stay below 10% utilization.  it's hard to do that with a $500 credit limit.  i was terrible, but i did it to myself.   that was 4 years ago. 

ex:700+ tu:700+ eq:700+
Valued Contributor
Posts: 1,513
Registered: ‎01-05-2010
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Re: Need a better card with a higher limit

Actually it's quite easy. Let's say you have a card with a $1,000 credit limit, which reports at the statement cutoff.

 

Ift doesn't matter if you spend $10 or $500 throughout the cycle. You can still pay down to $10 before the statement cut.

 

That leaves you with a 1% util, and your score will be better very soon. :smileyvery-happy:

 

(Don't forget to pay the minimum by the due date.)

 

Are you living within your means?
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Posts: 28,098
Registered: ‎04-01-2007
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Re: Need a better card with a higher limit

[ Edited ]

Lots of posts seem to indicate that having a low-limit card on your reports keeps your other limits low, too. It can be hard to break beyond that first low limit.

 

Do realize that you can pay your CC bills before they report to the CRA's. You can run $2K worth of charges through a $500 card and still have it report $0 if you know your card's timing. For instance, your Cap One reports the balance on your statement, on the statement date. HSBC and Orchard bank cards report the balance showing on your account on the last business day of the month, although it often takes them several weeks to actually send in the info.

 

That's how many of us use a good chunk of our CL's but have much lower amounts, even $0, report.

 

 

eta: my-own-fico out-typed me! :smileyvery-happy:

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Member
Posts: 12
Registered: ‎03-09-2008
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Re: Need a better card with a higher limit

this is all well understood.  i mentioned that i rarely carry a balance.  my issue is to whom should i apply?  moreover, what are my options in terms of cards?   my score all average 760 and the verizon deal is the only real negative mark.    which banks offer decent rewards and goodies?

ex:700+ tu:700+ eq:700+
Valued Contributor
Posts: 1,513
Registered: ‎01-05-2010
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Re: Need a better card with a higher limit

It does not matter whether you carry a balance (good that you don't though!). Yes, you are not paying interest, but no one knows any of that. If you want a card with a high balance, your background must shine. A low util, few inquiries and stuff like that.

 

A lower util can be achieved in little time. If you apply now, your approved card will get you a lower limit than if you bring down your util first. I understand that you may not have the means to bring down your util at this time, but to me that's where it's at.

 

There may be lousy card that will give you a high limit, but it could come back to haunt you. I don't know know of those cards. I consider for instance Discover to be "a better card", and chances are you'll be approved, I don't know. But you may not get what you consider to be "a higher limit".

 

Are you living within your means?
Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Need a better card with a higher limit

You should keep the Cap 1 and the Sears.  

 

You probably have to pick Amex or Discover and apply.   

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Registered: ‎04-01-2007
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Re: Need a better card with a higher limit

I would strongly urge that you check out local credit unions and see if any offer cards, if you qualify, and if you would want to have a card from them.

 

CU's traditionally have higher CL's than banks, and they're generally much, much better to work with.

 

You can also try one of the popular national CU's here, like Alliant. But check the threads first, because I can't keep track of which likes to see what vs automatic doom.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Regular Contributor
Posts: 122
Registered: ‎03-01-2009
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Re: Need a better card with a higher limit

 


haulingthescoreup wrote:

I would strongly urge that you check out local credit unions and see if any offer cards, if you qualify, and if you would want to have a card from them.

 

CU's traditionally have higher CL's than banks, and they're generally much, much better to work with.

 

You can also try one of the popular national CU's here, like Alliant. But check the threads first, because I can't keep track of which likes to see what vs automatic doom.


 

I second the recommendation for a local CU.  Mine treated me very well recently, and although the rewards program on the card I received isn't outstanding, it's better than nothing.  

 

And although everyone's situation is different, I applied for the Discover More and the Costco TrueEarnings Amex, just hoping for a nice prime card to get better rewards, and was declined by Discover and approved by Amex. Based on that, I might say it's easier to get an Amex, however YMMV. I have been shopping at Costco on the same membership number for over 20 years (since it was Price Club, before they merged with Costco), so that may have had something to do with the approval. 

 

Good luck to you :smileyhappy:

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