High Limit Credit Cards for Good Credit

If you have a good credit history, you can avail of several benefits like unsecured credit cards, besides higher credit limits on these cards. Credit limit is nothing but the maximum amount which you can use with the help of your card. And if you want a higher limit on your credit card, you at least need to have a good credit score in the range of 700 to 759, so that you can get a higher credit limit without having to pay a higher rate of interest. Any score in the range of 660 and 699 is also considered a good credit score but, you may have to pay a higher rate of interest. The process of getting high limit credit cards for good credit is not easy and you need to go through a lot of paperwork, before you get the card in hand.

High Limit Credit Cards for Excellent Credit

If your credit history is excellent, i.e., it's more than 760, you can get a high limit credit card easily. The best part is the rate of interest would also be on the lower side, but you should keep in mind that you use it judiciously so that you maintain such excellent credit scores. On the other hand, if your credit score comes under good credit score range, you may not find it that easy to get approved for a high limit credit card.

Once you apply for a high limit credit card, the credit card processing procedure involves checking your credit score. If they find that you have a credit report of above 660 but below 700, then you may need to pay a higher rate of interest. Usually in such cards, the credit limit can be anywhere around US $10,000, but that would depend on your current levels of income, besides your credit score. You can also opt to apply for multiple cards, as many a time you may not get the credit limit which you may want with a single card. With multiple cards, the limits which you get in each card may add up to the total amount you needed. Moreover, if you apply for multiple cards, the whole process of getting the cards in hand may be expedited. However, while using such high limits on your credit cards, you need to ensure that you use not more than 30% of the credit limit available. Many a time people with good credit score range have used more than the specified amount and as such they have fallen into the bad books of credit rating agencies.

Availing High Limit Credit Cards for Good Credit

Be it high limit credit cards for fair credit, good credit or excellent credit score range, each has its own advantages and disadvantages. The main advantage of high limit credit card is that the credit utilization ratio can be on a higher side. Credit utilization ratio is said to be inversely proportional to the credit score. However, on the downside, if you use too much of your available credit, there are chances that your credit score may fall down, which in turn may make it difficult for you to get credit on favorable terms. Even if you pay your bills on time, the credit card company would feel that you are a high risk customer, especially if you exceed certain limit (30% to be precise).

An effects of a high credit limit can be a continuous cycle, as there is a relationship between credit limits, credit scores and credit utilization ratios. High credit limit gives a boost to credit scores, and with a good credit score, your credit limit is increased.

There are times when even if you have a good credit score, your score may show to be below the range of a good score. That's because the credit card companies may not have reported your payments on time. If you find such a case, then you need to get in touch with the credit agencies and get all discrepancies sorted out, or else your credit score would continue to reflect a not so good score. It's not that if you have a bad credit, you won't get a high limit credit cards for bad credit, but you will need to pay a higher rate of interest, besides the cards may be secured.

So there are several advantages and disadvantages of having high limit credit cards. While you apply for such a card, make sure that you get quotes from different credit card companies so that you get the best deal. Moreover, go through the terms and conditions, so that you know the rate of interest which you will need to pay.