Do really high limits on a CC help in any way?

[Anonymous]

Currently I have four cards, all over $5k limit. My Amex has a $12k limit. If I go for the 3x CLI trick with Amex presumably that takes me to a $36k limit. In a typical month I put perhaps $2000 on my Amex or about 15-20% utilization on that card, and 5% utilization over all my cards. In an atypical month I might put as much as double that, such as paying for an annual vacation, etc.

Would a big limit increase like that do anything to help my score, or am I already getting as much out of high limits as I can?

Aside from FICO score itself, do lenders ever look at the limits? And would a higher limit on my Amex be a positive (hey look he never uses what he has) or a negative (omg he has too much limit)?

Thoughts? How far do chase limits before it becomes pointless? I can't actually imagine wanting to put $12000 on a credit card. Highest I ever ran was once when doing a home renovation I put $8000 on, which I paid down before the statement cut (had saved up to pay for the reno).

Only purpose in asking for such a big increase would be if somewhere it might impress a lender that Amex trusts me? Or it helps a score? 

[JayPaulM29]

IMO, high credit card limits helps lenders match your limit when applying for a new card. I think having high CL is a good thing.

Depending on the CCC, requesting increases can create hard pulls which of course too many are seen as a negative.

[takeshi74]

Limits factor into utilization.  However, creditors do not simply match limits.

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@Anonymous wrote:

Aside from FICO score itself, do lenders ever look at the limits?

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As we say, it's never just about the score and creditors can certainly look at the details of your credit.  Different creditors may place different emphasis on specific factors.

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@Anonymous wrote:

How far do chase limits before it becomes pointless?

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Your call to make based on the info available.  There's utilzation to consider.  A creditor can certainly be concerned about your available credit but we can't tell you what that point is and there isn't a fixed point for everyone.  It will vary not only by credit profile but creditor as well.  There's also all the subjective stuff that plays into these decisions.

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@Anonymous wrote:

I can't actually imagine wanting to put $12000 on a credit card.

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Don't think of your limits as how much you want to spend.  Consider how utilization works and whether or not you're willing to micromanage.  I don't need my total limits but it is very nice to not have to obsess over balances and still have my spend and limits place my utilization at ~11% (will be much lower when I'm done with some 0% offers).

[elbori357]

Some of us pay all our bills with cc's. Yes including mortgage and cars. To answer your question, yes high CL attrack generally higher limits from other lenders and help keep util down.. Might want to search fico and utilization. Regards...

[DaveInAZ]

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@elbori357 wrote:
Some of us pay all our bills with cc's. Yes including mortgage and cars. To answer your question, yes high CL attrack generally higher limits from other lenders and help keep util down.. Might want to search fico and utilization. Regards...

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Not to derail the OP's thread, but how in the heck do you make a mortgage or car payment on a CC? I'd love the cashback rewards.

[VirusCredit13]

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@DaveInAZ wrote:

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@elbori357 wrote:
Some of us pay all our bills with cc's. Yes including mortgage and cars. To answer your question, yes high CL attrack generally higher limits from other lenders and help keep util down.. Might want to search fico and utilization. Regards...

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Not to derail the OP's thread, but how in the heck do you make a mortgage or car payment on a CC? I'd love the cashback rewards.

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I'm not sure if there is a good way to do it in order to get rewards. You could always use a balance transfer check, which will incur a BT fee. Rewards are usualy only from purchases so none will be gained doing that. There are other 3rd party service I've heard about that let you make mortage or other payments with credit cards but also charge a % fee.

[RobertEG]

An emergency occurs, you are out, and need to use your card for some reason.  The bill is $300.

With a $500 credit limit, your % util will be 60%

With a $5000 credit limit, your % util will be 6%.

If you pay before statement, it wont matter.

If you dont pay before statement cuts, then it does.