High Limit Credit Cards Do Not Exist

nolimitsHow can we say high limit credit cards do not exist when some people obviously have high credit limits on their cards? Follow our logic and you will understand…

There are no credit cards on the market that guarantee you’ll get a $5,000 or $10,000 or $20,000 or even higher credit limit if you are approved. Instead, card issuers reserve the right to approve you and give you whatever credit limit they choose. Check out this paragraph from the Citi Double Cash Card’s terms & conditions:

Your credit limit will be determined based on the following:

– Your annual salary and wages
– Any other annual income
– A review of your debt, including the debt listed on your credit report

We’ll inform you of your credit limit when you receive your credit card. Some limits may be as low as $500.

In other words, you may get a high limit on a credit card IF you have the income and credit history necessary to show you can handle a high credit limit without being at high risk of default. In fact, card issuers love giving high credit limits to customers who have shown they are big spenders and have the ability to pay for all those purchases.

But… is that you? Not if you have a history of paying your credit cards late, or defaulting on a credit card altogether. Not if your income is low.

So, if you’re trying to find a credit card known to offer high credit limits, that card doesn’t exist. However, we have known credit cards to give limits as high as 20% of your income if you have a good credit history. If you don’t have a good credit history? Well, stop looking for a high credit line that is likely to get you in trouble anyway and start looking at building a stronger credit record. Once you do, the higher credit limits will be offered to you without you even having to ask.