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credit card limit?


kingston

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just wondering, currently how much available credits do you guys have on your credit cards? I dont work and I have only $1000. I've had my card for over 1 year now, I use it for big purchases and to pay online bills. I've never been charged interest for paying late, so i was just wondering, should I ask for an increase? And currently I'm in my UG and was wondering if i increase it now would it benefit me later on when i need a huge loan?

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just wondering, currently how much available credits do you guys have on your credit cards? I dont work and I have only $1000. I've had my card for over 1 year now, I use it for big purchases and to pay online bills. I've never been charged interest for paying late, so i was just wondering, should I ask for an increase? And currently I'm in my UG and was wondering if i increase it now would it benefit me later on when i need a huge loan?

 

You can always ask for an increase. If you've got a good record, they'll usually bring you up by like 250-500$.

If you wait till you get into medecine however, banks give you a GOLD credit card (5k limit) free of charge for 3 years.

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2 years ago, I asked mine to be reduced as a preventative, self-control measure.

 

I never over-used my credit card, but having a lower ceiling makes you think twice about even the "needs" purchases.

 

My point is get it increased when you absolutely have the need. Otherwise, it would serve no beneficial/useful purpose.

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The first year I had a credit card, my bank was super-stingy, and the few times I called to raise it by like $100-200 just because of buying expensive airplane tickets, they were very willy-nilly about raising it. Then once I had held a job and paid my bills on time for a year, they started constantly calling me with offers to raise my limit. When I applied for my mortgage, I was glad that I had taken the first few increases, as my banker told me that the more credit you have available and the less of it you use, the better it looks on credit applications. After it went up to like $15K, I've stopped accepting any further offers to increase it - which continue to come in every few months - bizarre given that I haven't worked for 2 years! I use my credit card all the time just to get CashBack, but I pay it off with my LOC every month.

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Technically speaking, It is better to have a higher credit limit. You credit score is influenced by the ratio of total used credit to total available credit. Lower ratio means better score.

 

Correct. A large component of your credit score is based on this ratio, which should ideally be 10%. So using up $400 on a $1000 credit limit isn't as good as using $400 on a $4000 credit limit.

 

And this is based on your total credit limit of all your cards.

 

And for the record, I have two cards - a Visa with a limit of $3800, and a Mastercard with $3500 (for a total of $7300).

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