@Anonymous wrote:I have a question...Why does everyone want a high credit limit??? I see people saying they have credit limits of $15000 or more on one card but need higher limits...Is it the flex? But if it is, who are you flexing on? Also, don't tell me you do investments with the money because if that was the case, you should have had a capitol by now to invest that or you would be using the Platinum or business cards... Also isn't it the objective to pay your card off every month...so if you have a $15,000 a month debt..then you shouldn't be asking for a higher limit..the credit cards banks would have seen that you are paying them back every month and given you a higher limit.. Just asking to understand...It's not personal
I can't speak for everyone... it seems, some just want to see how high they can go; and others have big monthly spend and want higher limits so the card isn't reporting maxed every month without babysitting the card.
I know a few people that refuse to use more than 10% of the limit, so the higher the limits the fewer cards they have to spread their purchases across.
It's not a flex -- it's to control both individual and aggregate utilization.
The members of this forum care, primarily, about two things: their finances and their FICO scores.
A $5000 purchase on a $15000 limit is 33% individual util and, depending on the profile, could drop your score a few points til it's paid down. Having a higher limit doesn't mean you have significant debt or that you spend that much on a regular basis - it just offers cushion for those moments you use your credit for a significant dollar amount that you may not plan to pay off before the statement cuts to prevent it from reporting to the bureaus.
My credit profile is very senstitive to utilization. Unless I plan to carry a balance for a whle, I pay my cards off each month -- but they still report their monthly balance each month. Having a high enough limit - both individual and aggregate - keeps me from having to micromanage reported utilization with payments prior to the statement date -- I can, instead, let my balances report as-is, take advantage of my 30-day grace period, and pay by the due date.
@Anonymous wrote:I have a question...Why does everyone want a high credit limit??? I see people saying they have credit limits of $15000 or more on one card but need higher limits...Is it the flex? But if it is, who are you flexing on? Also, don't tell me you do investments with the money because if that was the case, you should have had a capitol by now to invest that or you would be using the Platinum or business cards... Also isn't it the objective to pay your card off every month...so if you have a $15,000 a month debt..then you shouldn't be asking for a higher limit..the credit cards banks would have seen that you are paying them back every month and given you a higher limit.. Just asking to understand...It's not personal
I don't have limits quite that high, but in my own case what I do have is mostly just what issuers have given or bumped me to without me asking, or even putting much spend on their cards, really. So I imagine that someone with a higher reported income than mine could get higher limits in a similar manner. I gave my thoughts on how a person might come to have a lineup of high limit cards in another thread, but I think the main points to make here are:
1) Because of how utilization impacts credit scores and how lenders view high utilization, a responsible cardholder would probably not be running up $15k balances on a $15k limit. $1.5k or less is where I would want my reported balance to be, generally, and I would definitely avoid reporting above $4,410.
2) Charging on a card is not the same as carrying debt on a card, so even someone that is using a good portion of a $15k limit is not necessarily $15k in debt.
3) Some people have income such that their organic spend supports limits of $15k or more. If those people are credit card users, their limits are going to reflect that. (Additionally, some people also have business or reimbursed work charges that go through their personal cards, increasing spend and thus reasonable limits.)
Also, as stated above, some who see cc's as a hobby enjoy growing their limits as part of that hobby,
I like to flex not having my purchases declined. I also like to flex not having my scores plummet if a card reports 150% utilization from organic spending in some months because it only has a $15,000 limit. I'm weird like that.
