High Credit Limits - why?

[Mr Shneeblee]

Can anyone tell me what the value or need is for several high credit limit cards such a 14k, 20k etc.?

I know util comes into play to a degree, but why the obsession for high limits?

[mariuszh]

Utilization, showing the ability to be responsible with credit to other lenders.

[CTSoxFan]

Also, higher limits beget higher limits. If a creditor sees you are responsible with a high limit card, they are more likely to give you a higher limit when you apply for their card.

[BobWang]

Some people make charges >$20k

[mariuszh]

I purchased a motorcyle on a credit card in 2004..... 2008 I was beginning my credit repair journey...

[fixit502]

speaking of high limits, i logged in to NFCU and saw they showed me some love. My Visa is now $14,400. I know thats small in comparison to some of you.... (ahem Bob Wang *wink wink*), but hey... I've come a long way!!!!!

 

(Oooh! I better go update my signature!)

Edited May 17, 2013 by fixit502

[iWhat]

Love high Limits so close to breaking the hundred thousand dollars!

[cv91915]

Why am I considering a car with 440 HP and a top speed of almost 180 when the speed limit on the freeway is 65 mph?

 

Your question is rhetorical.

Edited May 17, 2013 by cv91915

[fixit502]

Why do we park on a driveway and drive on a parkway?

[Guest]

Because WE CAN!!!

[Guest]

Why am I considering a car with 440 HP and a top speed of almost 180 when the speed limit on the freeway is 65 mph?

 

Your question is rhetorical.

 

Ooooh, a game! let me see... First WAG: Dodge Challenger SRT8?

 

Please, give some clues!

 

*Country of originl, let's start with that. I can think of some BMWs that would fit that bill, as judged by top speed..

[hdporter]

I'm currently revolving $22K in debt (related to move a 1-1/2 yrs ago: original bal $20K furniture, $10K new a/c, $5K other) at 0% rates (<2% apr incl bt fees) . Thanks to high limits, my overall revolv utilization is approx 4% and my FICO's strong (760-800). I make my credit work for me and it pays handsomely.

[tifozi]

Size matters.

[Mr Shneeblee]

Sorry…. It’s not rhetorical question.

If you take your current debt (whatever it may be today) and If you had an emergency this afternoon and needed to max out your highest limit
card that you have, would that lead to financial trouble for you?

[Allisson0605]

When you really really need something , no one will give it to you.

So try to accumulate safety net , when not needed.

That's my take.

 

Besides all the scoring benefits discussed above.

[nbipbm]

There are people who make purchases in that amount every month, so a 5000 limit would not be good for them. I total probably 5-8 thousand a month, so a 10000 card is alright, but 15 or 20 is better. It also lets you spend more without looking to be maxed out all of the time.

[novice]

And you don't have to carry a pile of low limit credit cards when you go on a vacation. Take one and you are done.

 

Just remember not to carry any balance

[TrevorHere]

And you don't have to carry a pile of low limit credit cards when you go on a vacation. Take one and you are done.

 

Just remember not to carry any balance

No, you should take more than one when going on vacation - no matter the limit. There could be issues with the bank, approval because you're out of town or overseas, and of course you need the rewards varieties for different purchase types. Never only carry one credit card, especially when on vacation.

[EnC_Plus3]

Size matters.

+1

[mariuszh]

 

And you don't have to carry a pile of low limit credit cards when you go on a vacation. Take one and you are done.

 

Just remember not to carry any balance

No, you should take more than one when going on vacation - no matter the limit. There could be issues with the bank, approval because you're out of town or overseas, and of course you need the rewards varieties for different purchase types. Never only carry one credit card, especially when on vacation.

 

Coming from someone that has worked in the travel industry - I second this statement!

[fthboregon]

We pay for essentially everything through our credit cards for a couple reasons - rewards and insulating our checking account and other "real" money from fraud. We PIF every month, but our balances can be pretty high when the statement cuts. I don't want to worry about keeping track of when cards report to the bureaus and pay before that, etc. - I just want to use and pay our cards and have our credit stay good (we worked hard to get it back here!). So, when a limit is $10k, and we put $7k on it in a month, our credit score is going to take a big hit. I'd rather have high limits and not have to worry about our normal util tanking our score month to month.

[LKH]

 

 

 

Sorry…. It’s not rhetorical question.

 

 

 

If you take your current debt (whatever it may be today) and If you had an emergency this afternoon and needed to max out your highest limit

card that you have, would that lead to financial trouble for you?

 

 

 

If you had an emergency and didn't have a high limit card to max out, would that lead to financial trouble for you?

[hdporter]

 

 

 

Sorry…. It’s not rhetorical question.

 

 

 

If you take your current debt (whatever it may be today) and If you had an emergency this afternoon and needed to max out your highest limit

card that you have, would that lead to financial trouble for you?

 

 

 

What kind of f'ed up hypothetical is that?? Why not ask, "if you had an emergency and needed to rob your local gas station, would that lead to trouble for you??" Common sense should tell you that anyone with a brain wouldn't be led to either scenario.

 

"Available credit" isn't the same thing as debt, and no one in their right mind would suggest that one necessarily leads to the other. (Of course, I grasp there are those who possess little willpower and might think the rest of the world lives similarly.)

[SouthernTreat]

When you really really need something , no one will give it to you.

So try to accumulate safety net , when not needed.

That's my take.

 

Besides all the scoring benefits discussed above.

Ditto :-) The best time to apply for credit is when you don't need it :-P

Edited May 17, 2013 by SouthernTreat

[cashnocredit]

 

 

 

Sorry…. It’s not rhetorical question.

 

 

 

If you take your current debt (whatever it may be today) and If you had an emergency this afternoon and needed to max out your highest limit

card that you have, would that lead to financial trouble for you?

 

 

 

No. Would a bank issue a card that someone couldn't eventually pay off if they used all the CL? That's actually against the CARD act were a bank to knowingly issue a card with such a high CL that it allowed someone to run up a debt they had no way to repay.