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Are you wondering how you can get more credit? Perhaps $10,000 or more? Most users associate a $10,000 credit limit as a “high” credit limit.
Higher credit limits allow you to make bigger purchases and earn bigger rewards, not to mention it can improve your credit scores and lower your credit card utilization ratio.
Before we dive deep, let’s cover what a credit limit is.
Your credit limit is the maximum amount you’re allowed to spend on the card without being penalized or paying off at least some of your balance.
Trying to get a high credit limit credit card can be tough business since it’s the credit lender that determines what you credit limit will be after you apply. Their decision to give you a specific credit limit can be based off many factors.
Since high credit limit can vary depending on who you’re talking too, for the sake of this article, we’re going to list it at $10,000.
Why Target A High Credit Limit Credit Card?
Well, there’s a lot of reasons why one would want a high credit limit credit card.
For starters, it allows you to purchase more expensive things. While we’re sure that decision is based off your own financial goals and needs, a higher credit limit gives you more opportunities to make purchases.
Just knowing you have a $10,000 credit card limit gives peace-of-mind, just in case you need a new fridge, a new heating/cooling unit or a new front porch. Knowing you have that card when needed is a big deal.
Furthermore, higher credit limits are going to lower your credit card utilization ratio as we discussed briefly earlier. If you had a total of $5,000 in total credit and you were using $2,500, you’d have a credit utilization rate of 50 percent.
If you could get up to $10,000 in credit, your credit utilization rate would drop to 25 percent. In most scenarios, that would increase your credit scores by a few points.
Some people spend a lot of money and want to take advantage of the rewards. If you’ll be spending a lot of money on your credit card, it may be worth the $400-$500 annual fee you must pay to use the credit card.
So, How Do I Get A High Credit Limit Card?
Like we said earlier, there’s no easy way to go about it. The best way to get a high credit card limit is by having great credit and a lot of income.
If you already have credit cards, you can apply for a credit limit increase. In order to get to a $10,000 credit card limit, you’re going to need to put in some work. How?
Make sure you’re always making your payments on time, even early if possible. When you make payments, make more than just the minimal due.
If you have a $2,000 limit, try using close to that amount but paying it off every month. This will show them you use the credit limit you have, but you always pay it off every month.
Now, one way to get lenders to notice is by applying for new credit and getting a higher credit limit.
If you apply for a new card and get a $5,000 credit limit, you can tell you other lender about it, especially if you’ve been with them for a long duration.
At the least, be sure to mention it before you apply for a credit limit increase.
Asking For A Credit Limit Increase
If you need a bigger credit limit, just ask. If you’ve been using your credit cards responsibly, you could have a good shot at getting a higher credit limit.
While it may not get you to $10,000, every little increase matters. As long as you’re using your credit cards right, you stand a good chance.
Some credit card lenders may ask you why you need a credit limit increase, “never hurts to start thinking about that now.”
If you’ve only been using a little bit of your credit limit, try using more but make sure you’re paying it off every month so it doesn’t hurt your credit card.
The one downfall for asking for a credit limit increase is that it will usually lead to a hard inquiry on your credit report.
What Type Of High Limit Credit Card Should I Get
There’s a number of different credit cards out there that could offer you a $10,000 credit limit.
In any scenario, your credit card lenders determine your starting credit, you determine where it goes afterward.
How do you get worthy? You use your credit often and responsibly. Period.
Discover, Chase, American Express, all of them will give you a credit card limit of $10,000 or greater if they feel your worthy of it.
You can also get credit card offers by signing up to Credit Karma or Credit Sesame. What we like about these platforms is the fact that they give you credit card approval odds based on your credit reports.
While none of these are 100 percent accurate, it does give you a general idea of what credit cards you could potentially get approved for.
The better your credit history is, the more offers you’ll receive from credit card lenders.
A $10,000 credit card limit would be awesome for your financial portfolio, but it takes time to get to this level where lenders will give you such a high limit.
Remember, if you’re aiming for a $10,000 credit card limit, you need to;
- Make payments on time, early payments are best
- Make sure you’re using your credit card regularly
- Keep your credit in good standing
- Pick up multiple credit cards to help your credit improve
- Keep your credit utilization ratio low (10-20 percent)
- Monitor your credit regularly, make sure it’s accurate
- Ask for credit limit increases every 6-12 months
If you can focus now on building your credit or continuing to have good credit, the opportunities for higher limit credit cards will be there. It can take years to build great credit but it’s never too late to start building your credit.
The sooner you start, the quicker you’ll be at that $10,000 credit card.