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Location: Formerly Pleasanton Ca, now in Marietta Ga
10,441 posts, read 8,680,733 times
Reputation: 16857
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I have a credit card with an 8000 limit . I typically charge about 3000 a month then pay it off in full each month. Right now it is at 4500.
When is it better to ask for a limit raise. I'd like to get to maybe 15,000.
Pay it down to zero then ask? Or just ask while the balance is where it's at?
If you're not really hitting the limit now why would you need a higher limit? Especially that much higher?
You'll also find most people on this forum are going to be against credit cards unless:
A) You're new to personal finance and looking for a 0% card with a free balance transfer so you can pay off existing credit card debt asap.
B) You run a business and you're looking for a high rewards credit card which you pay off every month via the business so you can score yourself free travel and ipads and such.
I have a credit card with an 8000 limit . I typically charge about 3000 a month then pay it off in full each month. Right now it is at 4500.
When is it better to ask for a limit raise. I'd like to get to maybe 15,000.
Pay it down to zero then ask? Or just ask while the balance is where it's at?
Depends on the credit card company but generally, It is 6 months to a year with good payment history, more than payment minimum and low utilization.
In most cases, never! The CC companies are happy to raise one's limits because they know many will view it as a 'bell' to start increased CC spending. (Exceptions might include those who use their CC for reimbursed business spending). Even the notion 'earning' points/awards is misleading. This causes many to lose sight of actual/budgeted spending - and fall behind.
As expected by some, an increased CC limit does not favorably impact one's credit score or have any other positive advantages for anyone who views CC's as an opportunity to buy things one cannot otherwise afford.
In most cases, never! The CC companies are happy to raise one's limits because they know many will view it as a 'bell' to start increased CC spending. (Exceptions might include those who use their CC for reimbursed business spending). Even the notion 'earning' points/awards is misleading. This causes many to lose sight of actual/budgeted spending - and fall behind.
As expected by some, an increased CC limit does not favorably impact one's credit score or have any other positive advantages for anyone who views CC's as an opportunity to buy things one cannot otherwise afford.
This is false and simply reeks of someone that’s afraid of CC. A higher limit certainly can positively impact ones credit score because utilization is a factor. It’s also positive advantage if I had an emergency an needed 5k, 10k or 50k I can put it on a credit card without hesitation instead of transferring money from savings taking 1-2 possibly 3 if I the need is on a weekend.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,441 posts, read 8,680,733 times
Reputation: 16857
Quote:
Originally Posted by Lowexpectations
This is false and simply reeks of someone that’s afraid of CC. A higher limit certainly can positively impact ones credit score because utilization is a factor. It’s also positive advantage if I had an emergency an needed 5k, 10k or 50k I can put it on a credit card without hesitation instead of transferring money from savings taking 1-2 possibly 3 if I the need is on a weekend.
This.
Plus I've been rebuilding my credit. It sits in the low 700 range now and ultimately I'd like to be in the top tier.
I like the reward points and have some rehab work on another rental I just bought. If I have to spend 30k I'd rather use a credit card and get the rewards rather than just writing a check for it.
I have a credit card with an 8000 limit . I typically charge about 3000 a month then pay it off in full each month. Right now it is at 4500.
When is it better to ask for a limit raise. I'd like to get to maybe 15,000.
Pay it down to zero then ask? Or just ask while the balance is where it's at?
The limit on a Credit card is what you owe on that card even if you don't borrow that much.
Yep, other lenders will see that limit and take it as an existing debt because you can borrow that much without any further credit check !!!!!
A big card limit is a fools game because most people see it as money they can spend .......so they do.
Years ago I locked my limit at $10,000 in case of a dire need throw caution to the wind emergency fund. I've since never used more than $1,500 of that limit because I've never had that "emergency" to worry about. So my advice is to lock your limit at an amount you KNOW you can pay in a month and move on.
Credit card debt is like quick sand.....there is no escape once you get in
The limit on a Credit card is what you owe on that card even if you don't borrow that much.
Yep, other lenders will see that limit and take it as an existing debt because you can borrow that much without any further credit check !!!!!
A big card limit is a fools game because most people see it as money they can spend .......so they do.
Years ago I locked my limit at $10,000 in case of a dire need throw caution to the wind emergency fund. I've since never used more than $1,500 of that limit because I've never had that "emergency" to worry about. So my advice is to lock your limit at an amount you KNOW you can pay in a month and move on.
Credit card debt is like quick sand.....there is no escape once you get in
Other lenders don’t assume credit limits are existing debt so I’m not sure if you just made that up. A lender may be concerned if you have large facilities open but it’s false to say that lenders take it as existing debt
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