Why do people request such high credit limits?

[Hotcoals91]

Higher limits look better on credit inquiries and give more options for other cards and products?

[Anonymous]

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@Anonymous wrote:

I see lots of people that have multiple credit cards with extremly high credit limits, such as $7,000-10,000.

What is the benefit of having multiple cards and high limits? (besides rewards points/cash back/emergency fund).

(I'm 25 and have a FICO score around 760. I have one Travel Rewards Visa through my Credit Union. My new credit limit is $3,000, which seems ridiculously high to me.)

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I've actually have never experienced where I have an option during the application process for me to "request" a specific CL upfront (I have seen this option when requesting for a CLI on an existing account). Though I'm not exactly sure, I believe the CCC reviews the applicant's CS along with the CR and determines based on the existing CC accounts/CLs along with calculated risk factors they come up with the final approved CL for the new card.

In the past my CS was pretty bad due to the financial cliff I fell off of and it was tough to make large purchases without having to use a combo of card and cash. So I gather the higher the CL the better. You get the Rewards (if any) and helps your overall utilization I suppose. And yes with all of the card reward offerings today the initial CL on some cards appear to at least match the bonus spending amount threshold as advertised but not always (ie. spend 1k in 3 mo and get $250 credit statement, so the CL given would be at least 1k).

Great question!

[Anonymous]

Thanks for all the feedback everyone, I appreciate your input! 

[SouthJamaica]

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@Anonymous wrote:

I see lots of people that have multiple credit cards with extremly high credit limits, such as $7,000-10,000.

What is the benefit of having multiple cards and high limits? (besides rewards points/cash back/emergency fund).

(I'm 25 and have a FICO score around 760. I have one Travel Rewards Visa through my Credit Union. My new credit limit is $3,000, which seems ridiculously high to me.)

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The advantages of having  high credit limits are (a) the credit is there if you ever need it, without the need to apply for it and (b) if you allow one or more balances to report, your utilization will be lower if the limits are higher.

I am not aware of any disadvantages of having high credit limits.

[Anonymous]

Like bartering start high and both work to a more realistic number. I strive for high limits for a variety of reasons. 1. Higher use still keeps in low utilization % 2. Each card has its own use and rewards so spend accordingly 3. In case of emergency if I can’t sell assets/ get personal loan I can use credit card. 4. Makes the credit portfolio look fat and enticing for better loans and such. 5. Bragging rights. Boa got me a cash rewards card with if I recall start of 7k ( I’ll check exact limit later) with a 200$ of you spend 500 first 3 months. I bought a 800$ taxed competitive pistol with it. 800-200= screaming good deal. I already have the cash to pay it off. I pay it in 5 installments of 2 years 0% interest. Made a tidy profit and looks good for score.

[Thomas_Thumb]

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@Anonymous wrote:

I see lots of people that have multiple credit cards with extremly high credit limits, such as $7,000-10,000.

What is the benefit of having multiple cards and high limits? (besides rewards points/cash back/emergency fund).

(I'm 25 and have a FICO score around 760. I have one Travel Rewards Visa through my Credit Union. My new credit limit is $3,000, which seems ridiculously high to me.)

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For many it is simply "because they can".

Beyond a certain point there is no real justification based on personal need or lowering of utilization. However, nothing wrong with high limits for those that manage credit responsibly.

[Ardecko]

I'd like to point you to this thread: https://ficoforums.myfico.com/t5/Credit-Cards/Calling-All-Ballers-Highest-Card-Limit/td-p/5255717

There's also a thread(that I can't locate now) where a guy announced he had crossed $1 million in total open credit.

The reasons will vary, some good, some bad, but, it is fun 😁

[ScoreSizzle]

So I can brag to people while I drink my espresso with my pinky in the air. 

[Anonymous]

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@ScoreSizzle wrote:

So I can brag to people while I drink my espresso with my pinky in the air. 

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That tripple Venti Mocha w/whip swiping Starbuck's OG Gold Card moment I get it heheh

[ScoreSizzle]

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@Anonymous wrote:

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@ScoreSizzle wrote:

So I can brag to people while I drink my espresso with my pinky in the air. 

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That tripple Venti Mocha w/whip swiping Starbuck's OG Gold Card moment I get it heheh

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Hahaha that new Nitro Cold Brew, have you tried it?