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Securing High Credit line

DLC
New Member
New Member

Securing High Credit line

Does any one know what criteria is use to get a high limit credit card, say one that starts at 20K or higher.  I have Amex no preset spending limit and have charged up to 40K and paid on time or completely off within 30 days.  yet no one will issue a credit card greater than 10K?? I thought once we got the American express getting other creditors to extend higher credit limits would be easier.
Message 1 of 15
14 REPLIES 14
htc
Member

Re: Securing High Credit line

In my experience the best bet is to not use them.. strange eh... but every time I have run up a balance then paid it off in full, left the card alone for a few months and bang... a $3-5K raise on the limit comes through.   Sorry, I can't explain it other than they are just trying to intice you into more debt and you have proven that you are a good risk by paying them back previously.
 
Of course you could just ask the card issuers for a high limit?


Message Edited by htc on 04-18-2007 06:13 AM
Message 2 of 15
Brammy
Moderator Emeritus

Re: Securing High Credit line



DLC wrote:
Does any one know what criteria is use to get a high limit credit card, say one that starts at 20K or higher.  I have Amex no preset spending limit and have charged up to 40K and paid on time or completely off within 30 days.  yet no one will issue a credit card greater than 10K?? I thought once we got the American express getting other creditors to extend higher credit limits would be easier.


 
With limits like those have you tried the LUV button on your bank's websites?  It could be that they ffel you have enough avail creditand the abililty to charge more than you could reasonably pay back with your current income.

Message 3 of 15
TheNewWorldMan
Valued Contributor

Re: Securing High Credit line



@DLC wrote:
Does any one know what criteria is use to get a high limit credit card, say one that starts at 20K or higher. I have Amex no preset spending limit and have charged up to 40K and paid on time or completely off within 30 days. yet no one will issue a credit card greater than 10K?? I thought once we got the American express getting other creditors to extend higher credit limits would be easier.





Do you really need a credit limit higher than $10K?

From what I have read, taking credit limits higher than that really doesn't significantly impact your FICO. You get a major boost going from $0 to $5000. Some boost from $5000 to $10000. Beyond that, I'm pretty sure you approach a horizontal asymptote.

You might want to look at securing other kinds of credit. Maybe finance your next car, and pay it off in the first six months so you don't get bit by interest. In the long run that would help your FICO.
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in a credit-scoring postnuclear Stone Age...
Message 4 of 15
okrogius
Regular Contributor

Re: Securing High Credit line

"Do you really need a credit limit higher than $10K?

From what I have read, taking credit limits higher than that really doesn't significantly impact your FICO. You get a major boost going from $0 to $5000. Some boost from $5000 to $10000. Beyond that, I'm pretty sure you approach a horizontal asymptote.

You might want to look at securing other kinds of credit. Maybe finance your next car, and pay it off in the first six months so you don't get bit by interest. In the long run that would help your FICO. "

 

Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.

 

With regards to getting one - OP mentioned having an amex. Especially with a good history with them, it should be at most trivial to get a high limit card from them. Apply for a blue or a clear, and request those CLI's. Assuming you have a good relationship with them, you won't have any trouble getting something around 25k.

Message 5 of 15
pauliem
New Member

Re: Securing High Credit line

Beware of the American Express Green Card regarding "Credit Limit" and "(High Credit)" terms as used in the FICO score.
AX states their Green card has no pre-set spending limit--which is true. The FICO Credit Limit line is left blank --suggesting that
you have no Credit Limit or preset spending limit. The line directly below this is (High Credit) which I am told is your running 12 month spending
average. So if you spend monthly what established the average in the first place your FICO score will initially lose FICO points. This is
even with a prior near perfect score in the 800+ range. But it gets worse--in one month I spent five times my monthly average ( High Credit)
which was paid off weeks before the AX due date. My next quarterly FICO score dropped 30 points because of this buy.

When I asked American Express why I can not have an actual Credit Limit to preclude a situation as above, I was told NO because
the Green Card is a Charge Card and not a Credit Card. When I then asked AX why the Charge Card was used in credit reporting they had
no answer.
BEWARE!






t
Message 6 of 15
masdeocho
Moderator Emeritus

Re: Securing High Credit line

"Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible."

Actually, I don't think the first part of this is always true.  A potential lender can be scared off if you have too much available credit.  They see it as an opportunity for you to run up big debt in the future.

-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Message 7 of 15
TheNewWorldMan
Valued Contributor

Re: Securing High Credit line



@okrogius wrote:
Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.



One any CL over $1000, your utilization should already be negligible. There's no need to ever carry a balance higher than $50 or so to have a bill to pay most months and keep an account active. $50 on a credit limit of $1000 is 5%. To FICO, that's negligible. Increasing to $5000 CL brings your utilization down to 1%. Beyond that, what's the point? No need to gild the lily on utilization there.
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in a credit-scoring postnuclear Stone Age...
Message 8 of 15
Brammy
Moderator Emeritus

Re: Securing High Credit line



@TheNewWorldMan wrote:


@okrogius wrote:
Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.



One any CL over $1000, your utilization should already be negligible. There's no need to ever carry a balance higher than $50 or so to have a bill to pay most months and keep an account active. $50 on a credit limit of $1000 is 5%. To FICO, that's negligible. Increasing to $5000 CL brings your utilization down to 1%. Beyond that, what's the point? No need to gild the lily on utilization there.

 
LOL!!!  NWM what do you use your cards for?  A CL of 1k would kill meSmiley Very Happy   My last purchase was over 3k setting up a new comp and a wireless network.  I'd much rather put that on a 0% card and have that money sitting in a 5% interest account for 6 additional months than raid my savings. 

Message 9 of 15
TheNewWorldMan
Valued Contributor

Re: Securing High Credit line



@Brammy wrote:


@TheNewWorldMan wrote:


@okrogius wrote:
Having high limits both looks more impressive on a manual review of your report, plus makes your utilization negligible.



One any CL over $1000, your utilization should already be negligible. There's no need to ever carry a balance higher than $50 or so to have a bill to pay most months and keep an account active. $50 on a credit limit of $1000 is 5%. To FICO, that's negligible. Increasing to $5000 CL brings your utilization down to 1%. Beyond that, what's the point? No need to gild the lily on utilization there.

LOL!!! NWM what do you use your cards for? A CL of 1k would kill meSmiley Very Happy My last purchase was over 3k setting up a new comp and a wireless network. I'd much rather put that on a 0% card and have that money sitting in a 5% interest account for 6 additional months than raid my savings.






I use my cards as a strategic tool for increasing my FICO score, and as an EMERGENCY source of cash (until I get far enough ahead to build up savings). Nothing more.

Yes, I can see certain instances where, if you have a moderate to high income that is at least highly likely to continue into the future (nothing is guaranteed) coupled with a high CL and zero interest, you might find it advantageous to put something you were going to buy anyway onto a CC. Myself, I just don't like debt. I've been burned by debt before, and I don't believe in debt. I don't believe in carrying any balance that I can't pay off in a month or two if push comes to shove.

Of course, especially if you've had better luck in life than I have, YMMV.
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in a credit-scoring postnuclear Stone Age...
Message 10 of 15
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