Q: Over the past few years it seems like banks aren’t being quite as generous with credit limits as they once were. I have great credit but my cards only have $1,800 and $2,600 limits. How can I get a $5,000 limit credit card?
A: You are absolutely right in that high limit credit cards are more difficult to obtain than they were prior to the financial meltdown and the recession that followed, even for those with excellent credit. Because the credit card industry got burned with high credit default rates and losses during those years they now are still tighter when it comes to granting credit, even though their profits are once again at record levels nearly a decade after the collapse.
3 tips for how to get a $5,000 credit limit:
Apply for a premium tier credit card – If you have good to excellent credit, then you should apply for cards which are targeted toward high-end customers. However, do NOT apply for charge cards like the Gold or Platinum from AmEx if you are simply seeking a large credit line because those do not have a definitive preset credit limit like a credit card, so those are best avoided.
Here is a highly recommended offer:
Use your card responsibly – Recently a forum member asked requested credit limit increase on a card, but was denied due to card inactivity. So they began charging regularly with the card and paying in full each month – and after a few months, they decided to raise the member’s credit limit proactively. Of course, make sure you always pay on time with all accounts and try to stay within 30% of your credit limit on any card (doing so can reportedly impact your credit score).
Ask for credit limit increases periodically – This applies to existing cards as well as any new cards you get. Every few months or so check with customer service to see if you qualify for an automatic credit limit increase. Each credit card issuer will have a different policy concerning the frequency with which a customer’s credit limit can be raised, so ask the customer service rep to check for you. Regardless of your initial credit line assignment, you can probably build up to at least a $5,000 limit over time if you play your cards right. But be careful because most banks will do a hard pull (credit inquiry) when you request an increase. That’s bad for your credit score, so it can be better to just let the bank be proactive and increase your limit on their terms.
My recommendation for a high limit credit card
If you have good credit, you should check out the Discover it. It’s a higher-end card and known for being generous with credit limits. Many people report getting better than a $5,000 limit, even at times when other issuers weren’t being so nice.
However, if your credit is only average/fair, then check out these cards. The only almost guaranteed way to get this size of limit though is with a secured card where you put up a $5,000 security deposit, which would then become your limit. The term “almost” is used because not even secured accounts are guaranteed – there are still minimum requirements you need to fulfill for approval.
Written or last updated January 19, 2015