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I've always been curious as a soon to be college grad considering continuing with an MBA in finance, about credit card trends in the US. In otherwords, are a lot of americans walking around with like 3-5 chase cards discover etc lol with HIGH credit lines like 20k+? Or is this a thing of the past (pre-recession)?
Also, what is a realistic limit to expect or ask for on first card. Ideally I'd like a limit no less (or more) then 10-12k. And 2 cards.
In college I had an Amex card with a limit of 28,000 dollars.
However, I suspect Amex got confused, since I had the same name and address as my dad.
I don't have that card anymore, I just have two credit cards, both with a 3,000 dollar limit that I never really get close to. They get paid off at the end of every month, and we just use them to build up the points and get some discounts at vacation time.
I have a 22K Citibank MC that I received in 1998. I use it every month for the 1% rebate, but pay if off every month. Highest balance was $6,800 (for a trip) and paid it off the next month.
Never pay much attention to limit. Care only cashback. Love AXP unlimited 5% back in supermarket and gas station.
AXP used to offer $75 annual fee with 6% supermarket. Now AXP cap it with $6000 yearly limit and we have to cut it.
Also, a well known secret is to buy prepaid CC in supermarket to pay other charges or tax bill.
We have only three credit cards with limits of $25,000, $15,000 and $5,000. We also pay off our cards every month. And, until I was in my late twenties, I was always refused any credit cards I applied for although I have never had an unpaid or late debt (a more stringent time for the card companies).
I would accept the limit given and if needed (perhaps for a planed trip) then ask for an increase
I had a American express card co-signed by parents and gas card in college. My father made sure I paid them off monthly which American Express required then. By the time I got out of college I just had to transfer them when I got a job. The application required a minimum income and all debt listed and credit check even then. The gas card was just easy call since I had history. Every few credit cards then other than store ;gas and American Express. You also paid a yearly fee with American Express then.Dropped American Express later for no fee cards and still get offers . I have never had a interest charge as I still pay off monthly. and do most of my buying on them.
I don't know who in the heck would want to spend $40K they didn't actually have. I don't know what 'most' people do but I am a single mother, middle aged and I have only ever had one credit card. I think it started with $1000 limit. Now it has $10000. But since I have had it so long (25 years) and my credit score is excellent, I'm sure it would take one phone call to get that increased.
Not sure why I would need to do that. Maybe a medical emergency? I very rarely carry a balance. If I can't pay cash for it, I generally don't need it. The only debt I have is my mortgage.
That said, i am coming off of two months of unemployment (no benefits) and my checking acct hit an all time low today of $237. Yikes! So the credit card is going to have to work for me until I get paid at the end of September!
Bumping this old thread out of curiosity - there were soany people who posted on this thread that they only use cash. Why on earth would you do that? I don't get it:
1. A card cannot be stolen. If someone takes it or you lose it you just call and cancel. The credit card company will cancel charges. Stolen cash is just gone.
2. Purchase protection. Extended warranties and price protection on everything you buy
3. Free insurance typically on your travel and rental cars.
4. Points and cash back on everything you spend. With cash you get nothing.
I just don't understand a single benefit of using cash over credit unless you just don't have the willpower to not overspend?
A former colleague of mine told me his credit card limit got raised to $25,000 when his annual income was only about $23,000 or so. I was dumbfounded. I guess if they have issues they can just get another taxpayer bailout, right?
On the other hand if someone is making six figures (or close to it), I'd expect this kind of limit to be commonplace.
I'm not sure how or why some people have such high limits. I have two credit cards and the highest limit is $12,500 between the two (the other is $9,500). One of those cards (the lower limit one) is a Discover I've had for over 20 years and started off with a $500 limit when I was 18. The other is a Cap One Venture I've had for about 5 years. I used to have an Amex Blue that was in both mine and my exes name but we closed that account after a divorce. I have around an 800 credit score and make 6 figures. Granted, I don't use the cards very often, but still...
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