Credit Limit

[jjthom10108]

I want to apply for a credit card but in the past I was only able to get a small credit limit ($1000 or $2000) because my credit score was in the low 600 and now it is around 650 with no lates in the last year and only one 30 day late in the last 2 1/2 years. If I can't get a card with a $10000 or $15000 limit I don't want it because I want to get a lower interest rate card so I can consolidate 2 into 1. Is there any way to find out what your limit will be before you agree to getting the card. Thanks.

[utman17]

10 to 15k limit with a 650? Good luck, dont see it happening...

[DocDon]

I agree. You're going to have to work your way up to that point.

Even with the "pre-approved" offers, you still don't know what your CL will be. If you read the "*" it usually says "up to $xxxx", then in the fine print will say if you don't qualify, you'll get at least a $250 CL.

Best advice would be to search the threads here and find out the CL's others have gotten. Many have posted their scores at the time and who pulled their reports.

[utman17]

The last card I got had a 9500.00 limit from the start and that was with a 780+ score, I think...

[cabledude]

I think a good bit of it is score and also what your other accounts have in the mix. If you have one or more accounts with a $10K limit you have a better chance at another even with a lower score. However, if you have no open accounts with limits in that range I'd agree that you'll simply have to work up to it. From my experience MBNA is the most generous with CL increases. Get in the door and work it from there is good advise at this point.

[sjsharks]

You can easily get a 10K line with a FICO 690+, it's even easier if you already have a line of around 7K reporting. Do a BT up front and you can get even higher limit, this works particularly well with Chase.

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Edited February 3, 2011 by sjsharks

[8004me]

My startegy when I was stuck in the $5000 card range was to offer a BT and use the card alot for 6-9 months paying in full every few months.

Once you get the first 10K card it's easier to get larger line cards and negoiate larger lines with your exsisting cards.

Good Luck

[ananias]

I want to apply for a credit card but in the past I was only able to get a small credit limit ($1000 or $2000) because my credit score was in the low 600 and now it is around 650 with no lates in the last year and only one 30 day late in the last 2 1/2 years. If I can't get a card with a $10000 or $15000 limit I don't want it because I want to get a lower interest rate card so I can consolidate 2 into 1. Is there any way to find out what your limit will be before you agree to getting the card. Thanks.

To my knowledge, no, there is no way to know ahead of time what your credit limit will be on a new application. I strongly recommend against applying for another card so soon. It would be reasonable for you to call them and ask what sort of limit increase they would grant without reevaluating your credit report. Or asking them to lower your rate if you're carrying a balance.

Ask yourself these questions:

1) Are you or have you recently carried a balance (failed to pay a statement in full?) If so, then you may as well ignore the rest of this post, because from my perspective, if you're using a credit card to generate disadvantageous loans then you probably shouldn't let yourself have any credit at all.

2) Could you easily afford more credit? If you have a few years worth of recent tax returns that demonstrate a high income level, then even a total lack of credit history probably wouldn't stop you from being able to get high limits. Of course you'll have to send copies of those returns and give bank references that can confirm you are as affluent as you claim. This is wise to do even before you need it. Credit is a free asset--you never know when an opportunity to exploit it for financial gain will occur so it's best to be prepared with the largest overall limit possible.

3) Do you need more credit? Do you frequently bump into your credit limit despite paying your bill in full each month? If not, then you probably don't need more credit.

Is there some substantial upcoming purchase that you would like to be able to finance via a low interest offer or to get the rewards that requires a higher limit? If so, that's a good reason to grow your limit, but not at the expense of your overall credit rating. One card with a high limit is worth much more to your credit rating than a bunch of cards that collectively have a similar limit. Work with the issuer you have to raise its limit before getting another.

Do you realize that when you do take advantage of a low interest offer you often put yourself into a position where further use of the same card is prohibitively expensive (cost much more than you saved by taking advantage of the offer?)

4) How long has it been since you asked anyone for more credit? If the answer is less than two years then asking for more is most likely to hinder the average rate at which your credit limit climbs.