topic Re: Overall Credit Limits in Credit Cards

Overall Credit Limits

nightglider — Mon, 02 Jun 2014 00:15:25 GMT

Hey, people. First off, hello from a new guy. This seems to be a friendly/helpful community and I figured some of you could confirm my plans will work (or shatter my dreams). I currently have two CCs: CapOne Quicksilver with a $10k limit, and an Amex Everyday with an $11.5k limit. My plan is to get the credit limits on both increased over time so that I can eventually use one/both to pay for my next car, and/or a down payment on a house. Yes, my time-frames on both of these purchases are several years from now. Now don't panic, I'm not trying to do this in lieu of applying for loans. I've got money I'm investing and plan on having the full amount of whatever charges I make on hand to pay off in plenty of time. I'd simply rather use my cash-back cards instead of straight cash for these purchases for obvious reasons. With this in mind: 1. Is there a limit on the overall amount of credit one person can usually get? 2. Would I be allowed to put such large charges on my card(s)?

Re: Overall Credit Limits

isoldmyatlas — Mon, 02 Jun 2014 00:26:23 GMT

A bank will not accept a credit card for a down payment. You need to save up cold, hard cash for that. Also, while many dealerships will let you purchase a car with a credit card, they'll tack on a 3% credit card fee, thereby cancelling out whatever rewards you'd get by using the card.

Re: Overall Credit Limits

nightglider — Mon, 02 Jun 2014 00:31:43 GMT

Well, damn... Anyway, thanks for the answer.

Re: Overall Credit Limits

jugstore — Mon, 02 Jun 2014 00:52:19 GMT

I've read that some dealerships allow for a portion of the purchase price to be placed on a credit card. That shouldn't sway your decision when the time comes but a big purchase can earn some nice points/cash back or get your minimum spend knocked out if you go for a new card with a sign up bonus.

Re: Overall Credit Limits

09Lexie — Mon, 02 Jun 2014 00:58:15 GMT

Definitely check with the dealership. I had no problem using a cc for my car without any fees. However, for a home - cash only.

Re: Overall Credit Limits

youngandcreditwrthy — Mon, 02 Jun 2014 01:40:45 GMT

I would get cards that regularly issue checks which can be deposited into checking at 0%-1 or 2% for 9-18 months such as BOA, Barclay's, sometimes Chase and Citi...
Most car dealers will allow 2-3k as standard, but I was in a situation once where I wanted to charge about $20k for a BMW to Amex (I have sufficient credit!) with of course the idea to pay it off in a few months(was in 0% period for a year), and they had no choice but to accept it- told me they would as a last resort. Lol Wound up using savings though.
If your credit lines can sustain SHORT term debt like that without having high util, taking advantage of 0% is totally worth it. It takes diligence though. Of course, it is risky- but maybe not if purchasing a mostly appreciating asset.

Re: Overall Credit Limits

awp317 — Mon, 02 Jun 2014 02:04:09 GMT

@isoldmyatlas wrote:
A bank will not accept a credit card for a down payment. You need to save up cold, hard cash for that. Also, while many dealerships will let you purchase a car with a credit card, they'll tack on a 3% credit card fee, thereby cancelling out whatever rewards you'd get by using the card.

I have bought 7 cars using my card for either the down payment or the entire purchase and never had them tack on a 3% fee. Just dont tell them until the deal is signed.

Re: Overall Credit Limits

TatorTodd — Mon, 02 Jun 2014 05:26:38 GMT

I recently bought a car for 10k with a credit card with no additional fees added on.