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Do I want/need a higher credit limit on my CC?

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  • Do I want/need a higher credit limit on my CC?

    I got an email from Chase asking me to update my income information to see if I qualify for a higher credit line. My income has gone up considerably since I opened that card but is there really any reason for me to try and get a higher limit. Our current limit on that card is $32,500. The highest our bill ever gets is a little over $4,000, maybe $5,000 on rare occasions. And if we make any unusually large charges on the account, I'll usually send in a payment right away rather than waiting for the statement to come, so I never let the balance get all that high anyway. For example, when we charged college tuition (15K), I would make the charge one day and then pay it off the next day.

    Any benefit I'm not thinking of to getting them to up our limit?
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

  • #2
    Not sure, but I’ve always declined offers for an increase. It’s been at $10k for 20+ years on the only credit card I have.
    Gunga galunga...gunga -- gunga galunga.

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    • #3
      I'm like greenskeeper, my card is at 10k limit.

      Of course, I froze my credit so they couldn't pull my report to up my limit anyway. I never wanted it any higher because I didn't want to worry about someone stealing my card. I know I'm only responsible for $50 but still I don't want them having access to that $$ anyway!

      The only thing I can think of that a higher limit would do is help with your fico score by having your debt to credit ratio be smaller; if you didn't charge a lot and therefore increase your score. But I'm sure you don't have to worry about that, just putting it out there for others reading

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      • #4
        Originally posted by Thrif-t View Post
        The only thing I can think of that a higher limit would do is help with your fico score
        Both of our scores hover between 835 and 850. It can't get any higher than it already is.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment


        • #5
          I can't think of any benefit unless you plan to make a very large purchase and put it on a credit card. If that ever happens you can request a limit increase at that time.
          Brian

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          • #6
            Can't do it anymore, but some time back a buddy of mine paid his kids college tuition and housing bills on credit card to get the cash back and / or rewards. Far as I know, most institutions don't allow that anymore.

            Like you, a high monthly bill for us would be $4-5,000, so we don't need it and if you ever do a really large purchase, wire transfers are pretty darned easy. I really don't see much personal need for very high credit card limits, would be different if it were a card for your business.

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            • #7
              I'd take the higher limit every time they offer.

              Better to have it and not need it, than to need it and not have it.
              How can you have any pudding if you don't eat your meat?

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              • #8
                Originally posted by Fishindude77 View Post
                Can't do it anymore, but some time back a buddy of mine paid his kids college tuition and housing bills on credit card to get the cash back and / or rewards.
                We were able to do that the first couple of years for DD but then they changed the policy but at least we got to take advantage of it for that time and charged about $60,000.
                Originally posted by TexasHusker View Post
                I'd take the higher limit every time they offer.

                Better to have it and not need it, than to need it and not have it.
                At some point, though, doesn't having too much available credit start to count against you?
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

                Comment


                • #9
                  Chase keeps asking me what my income is, but I never tell them.

                  And increasing a $32.5K CL is either #1 an exercise in vanity, or #2 a sign that "you" are in serious trouble.

                  Since you're not in fiscal trouble, and not terribly vain, I don't see why you should do it.

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                  • #10
                    Originally posted by disneysteve View Post
                    We were able to do that the first couple of years for DD but then they changed the policy but at least we got to take advantage of it for that time and charged about $60,000.

                    At some point, though, doesn't having too much available credit start to count against you?
                    How can you have “too much” available credit? The more available credit you have at your disposal, the better off you are. I have a cc with a $50K limit and I’m putting $20-30K a month on it for mainly business things. In fact this next month I’ll likely approach the limit and I might need to call to see if i can get them to increase it!

                    I love it because I get free use of someone else’s money for at least 22 days if not up to 50 days. That’s significant. Plus I’m accumulating a free airline ticket every 45 days or so with my points earned. It also is SO convenient- rather than write checks and keep up with receipts, I just bust out the card and they keep an electronic record of the transaction. My accountant loves that.

                    Best of all, if I WAS in a cash crunch, I could make the minimum payment a month or two. Yes the interest would be crazy high, but hey, if I had a $30K cash crunch one month and it cost me a $500 bill in interest one month to defer it, so what? That might come in handy in an emergency situation.
                    Last edited by TexasHusker; 08-05-2018, 07:50 PM.
                    How can you have any pudding if you don't eat your meat?

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                    • #11
                      Originally posted by TexasHusker View Post
                      How can you have “too much” available credit?
                      Easy: some banks consider unused credit when determining loan approval.

                      https://www.forbes.com/sites/nickcle.../#4c7aa497efe3

                      Code:
                      However, every bank sets their own rule. 
                      They can decide what debt to include in the payment. 
                      They can also decide if unused credit cards should be included or excluded.
                      Thus, it's possible.

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                      • #12
                        Originally posted by TexasHusker View Post
                        How can you have “too much” available credit?
                        Originally posted by Nutria View Post
                        Easy: some banks consider unused credit when determining loan approval.
                        Exactly what Nutria said. How much available credit you have is a factor when applying for a loan. I know many people who have had an application denied for that reason. I guess the lender is afraid you might go nuts and rack up a bunch of debt and not be able to make your payments.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

                        Comment

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