Is 5K a toy limit?

[fishbjc]

For Donald Trump YES, for me NO.  I was thrilled to get 5k w/nfcu and estatic to get it bumped to 7k!

[chewchowlady]

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@phillyguy12 wrote:

3001+ i wanna make babbies with you

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Good Morning Philly, and thanks for making me laugh. hahahahahaha. 

[eddie84]

My Amex Optima with $500 CL, now that's a toy limit for me but at the time, I was just happy to be in with Amex again after so many years without one. lol

[tennisfan78]

5K is a great limit.  If you manage it well, It open up doors to higher limits soon.

[enharu]

@young, I don't think the naming of the new visa tier is confirmed yet. There have been several names tossed around the internet but it does seem to be more of a project code name, rather than the product's actual name. There are also different CLs and spending requirements being tossed around, which may have to do with the issuers setting different requirements.

So almost everything is still pretty much unclear. The cards probably will most likely come with a hefty AF anyhow, depending on the issuer. Some private banks are able to waive the AF for their clients though.

[Startome]

CHeck out my siggy. That should say whether 5K is a toy limit =D

[DaveSignal]

A toy limit is a limit that you can't really make use of to pay for normal expenses, because you will reach the limit just by filling your car with gas or paying for food... you can't really do anything useful with it. I don't live frugally, but I could probably make it an entire month just with $5000 and no income or other money available, without any living compromises. In my view, $5k credit is a generous amount of credit and can be used for most things throught the billing period without multiple payments. It is not a toy.

[CreditCardDiva]

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@SunriseEarth wrote:

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@DigitalArk wrote:

In general speaking. 

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I really hate that term.   At this point in my credit journey, I was pleased to get my cards with $250 limits.  Back before my BK, I had 5 TLs with over $7000 limits and the highest was $11K.  Looking back, AMEX was the only one who didn't indugle my desire for big limits and they were clearly correct.

Yes, there are plenty of people in a financial and credit position where $5K is just a paltry limit.  There are others clawing their way to good credit with a $200 Fingerhut TL.  I think it's more encouraging to simply say a card at a given limit doesn't meet one's current credit needs instead of dismissing it as a "toy limit."  

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I completely agree. IMO, 5k is not a "toy limit". Now, I know a lot of folks make/spend a lot of money, but sometimes this whole "toy limit" thing starts to seem a bit pretentious.  If someone can afford to pay off  thousands of dollars in charges, in full, each and every month...and then some, and meet all their other financial obligations with ease, then I guess 5K is not up to standard, but so what? Also, it depends on what kind of expenses you'll be running through the card.

Why does this question keep coming up? Why does it matter what others consider to be a "toy limit", considering that we all come from and are at different places in our financial journeys? The answers will vary, so there really is no "right" answer. To be honest, I hope I never get to the place where I can dismiss 5K as a "toy", but I'm fine with those who can and do. Each person needs to look at their own individual financial situation - their income, expenses, savings, goals, etc. and determine what limit best suits their situation.

[longtimelurker]

On a recent similar thread, someone made the great point that it also depends on the card, giving the example of a Starbucks card (where $500 is more than enough for most people) vs an international airline card, where $500 isn't enough to buy a ticket.

[Startome]

I take home 14K a year, so a 5K card could easily cover 4 months of living. lol