Posts tagged "limit"

Can I call the credit card company and ask for a higher limit?

Question by starfishblues: Can I call the credit card company and ask for a higher limit?
I got a credit card about 6 months ago with a limit of just $ 800. It’s a student credit card. Can I call the credit card company and ask for a higher credit limit? I’ve heard you can ask for a lower interest rate and sometimes they’ll give it to you, but is the same true for a higher credit limit?

Thanks in advance.

Best answer:

Answer by Dr. Savvas

As a general rule, banks are always happy to give a higher credit limit.

However it does depend on the specific bank that you’ve been issued the card.

Usually banks look at your income and sources of funding prior to increasing the credit limit, but they do not pay much attention to it. So most probably the bank will increase the credit limit,

if not. tell them you found a better deal with some other bank, they will then ask which bank; give them a bank’s name in random and provide them with a reasonable deal and I guarantee you that they will match it.(the deal)

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Posted by getloans - April 9, 2013 at 1:54 pm

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Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?

Question by shooter 1: Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?
I have zero debt. I also have several credit cards. I am wondering how it will affect my credit to request the highest limit for each card, or if I should cancel all but 2 and have those with high spending limits. Along the same lines, how does “available” credit affect one’s credit score negatively or positively? If I get a $ 50,000 limit on a card (with 0 balance) but say, go to buy a car, will I be denied because I have too much credit out there?

Best answer:

Answer by talr
It’s better for your credit to have several cards with modern limit, as the FICO formula used by the credit bureaus consider the number of credit lines in good credit (by their type, e.g. revolving credit, installment loans etc). A lower number of credit lines will result in a lower score (since you’ll have more limited history).

Obviously that assume all of them are in good standing – if they’re not, the picture changes dramatically.

As to the total credit, what they look at is which percenage of your total credit are you using, and for that it’s irrelevant how it’s distributed between the credit lines.

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Posted by getloans - October 30, 2012 at 2:45 pm

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Is it possible to have a $50000 credit card cash advance limit?

Question by : Is it possible to have a 000 credit card cash advance limit?
I have been trying to learn about credit card cash advances, as I’m curious to learn how they work. How do credit card companies determine this limit? How high can this limit be? Thanks guys

Best answer:

Answer by Barnesy

Neither you or the lender would want a cash limit this high. If you need this level of cash then you would take out a personal loan. The interest rate would be less and the entire arrangement would be more manageable for all parties.

Typically, a credit card issuer does not like to see large cash-advances against a credit card. They often signify that a borrower is in some kind of financial stress.

The most sophisticated credit card issuers can see a cash-advance inside (or nearby) a casino and make rapid status changes on the account. e.g. a customer that has maxed out their daily card limit on debit card cash and then proceeds to run credit card cash-advances is probably not going to be the best credit risk.

This whole area is extremely complex. Banks hire large teams of statistical analysts to perfect lending models around cash advances. They then spend millions on systems that can act upon the models in real-time.

Know better? Leave your own answer in the comments!

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Posted by getloans - October 8, 2012 at 1:53 pm

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