Best strategy to increase credit limit if it's already over 30K

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Brucetheshark
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Best strategy to increase credit limit if it's already over 30K

Postby Brucetheshark » Tue Nov 03, 2009 4:55 pm

Hi there,

I have about $25 000 CAD of credit limit spread on two cards and one USD$ 8000 on another card. Now I'd like to increase my limit to at least 10K more. (CAD)
About 28K is Mastercard and 5K is Visa.

I make about 80K a year. I need high credit limit because I often need to secure very large deposits on my credit cards for extremely expensive stuff that I rent for my job. I guess I ended up being able to have that credit limit because I always paid off the balance and made a few very large purchases on the MC. Never was late and never paid any interest.

Now I was wondering what was the best strategy to increase my limit even higher.
- should I try to increase my limit of 20K on the MC even higher? (stick with the ones that know me?)
- should I apply for a new credit card with a new bank? (I assume I'm attractive for them because of my good credit but they might see risk in the fact that I already have 33K of credit)
- since most of my credit is with mastercard (28K), should I rather go for Visa or Amex? (same logic as second point)

+ (I already tried to raise my Visa and they said they couldn't - I needed some investment with them but maybe that's the bank itself and not Visa...)

I'm asking for some help/suggestions because I don't want to apply here and there thus lowering my credit score.

Personally, I'd prefer having another 10K on another card rather than having 30K limit on one card. But I also understand the fact that the bank where I have my US and CAD Mastercard know me well and would perhaps be more open to raise my limit.

But also at some point I should be reaching some limit right since I make around 80K (+ investments) and I must be close my credit cap.

Your help would be appreciated.


DoingHomework
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Postby DoingHomework » Wed Nov 04, 2009 11:49 am

Brucetheshark wrote:Hi there,

I have about $25 000 CAD of credit limit spread on two cards and one USD$ 8000 on another card. Now I'd like to increase my limit to at least 10K more. (CAD)
About 28K is Mastercard and 5K is Visa.

I make about 80K a year. I need high credit limit because I often need to secure very large deposits on my credit cards for extremely expensive stuff that I rent for my job. I guess I ended up being able to have that credit limit because I always paid off the balance and made a few very large purchases on the MC. Never was late and never paid any interest.

Now I was wondering what was the best strategy to increase my limit even higher.
- should I try to increase my limit of 20K on the MC even higher? (stick with the ones that know me?)
- should I apply for a new credit card with a new bank? (I assume I'm attractive for them because of my good credit but they might see risk in the fact that I already have 33K of credit)
- since most of my credit is with mastercard (28K), should I rather go for Visa or Amex? (same logic as second point)

+ (I already tried to raise my Visa and they said they couldn't - I needed some investment with them but maybe that's the bank itself and not Visa...)

I'm asking for some help/suggestions because I don't want to apply here and there thus lowering my credit score.

Personally, I'd prefer having another 10K on another card rather than having 30K limit on one card. But I also understand the fact that the bank where I have my US and CAD Mastercard know me well and would perhaps be more open to raise my limit.

But also at some point I should be reaching some limit right since I make around 80K (+ investments) and I must be close my credit cap.

Your help would be appreciated.


It sounds to me like you need a business line of credit rather than a credit card. If you approach it that way and have good credit (which you seem to with those limits) then I think you will not have a problem.

I would suggest TALKING with a banker and explaining the situation. You can probably get a business V or MC with the limit you need. This might be done by replacing one of your existing cards. But I would definitely talk with a local bank.

This is a very normal thing for a business to do but it is unusual for a consumer. You are likely to get a better response if you approach it from a business perspective. It is highly likely that you will need to pay a higher annual fee though but that is also normal for business credit.

Brucetheshark
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Postby Brucetheshark » Fri Nov 06, 2009 12:14 pm

Thanks for your answer.

That makes sense. I have set an appointment with the bank next week so I'll see.
I'll report back here.

Meanwhile, I'd be curious to have an answer to my question in my first post. I'd like to understand banks and credit better.
If I had wanted to raise my limit as a consumer, what's the best usual strategy and how do banks think?

Previous question:

- should I try to increase my limit of 20K on the MC even higher? (stick with the ones that know me?)
- should I apply for a new credit card with a new bank? (I assume I'm attractive for them because of my good credit but they might see risk in the fact that I already have 33K of credit)
- since most of my credit is with mastercard (28K), should I rather go for Visa or Amex? (same logic as second point)

Brucetheshark
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Postby Brucetheshark » Tue Nov 10, 2009 12:27 pm

I met with the bank today.

As expected they're saying my option would be to get a line of credit. Even as a business perspective, they say I could not get a credit card with a limit much higher than it is now.

The thing is that even if it's for a few days, I am reluctant to take money from a line of credit and pay *in cash* the deposit required. The transaction is just not the same and I have no protection in case something happens. (paying 15K of deposit in cash makes me shiver)

I might migrate to doing that in the near future but as for immediate needs, what could I do? (I recently wasn't able to take this gig because I didn't have the necessary funds to "insure" the equipment involved)

Is it that uncommon to have cumulative CCs higher than 30K for someone who makes a little under 100K?
Is there any way that I could increase my limits significantly and/or get new credit cards with high limits?

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Postby Cucumber » Wed Nov 18, 2009 2:25 am

To answer your question about how banks thin, they only want to give credit to people that don't need it. So basically act like you don't need the money at all you just want the flexibility with billing.

I think you're only option is to get another card and split those big charges up between cards. That is better than a loan to b/c if you get the deposit back before the end of the month you won't have to pay any finance charges if it's done before the billing cycle closes.
OBAMA
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DoingHomework
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Postby DoingHomework » Wed Nov 18, 2009 2:37 pm

You can go to Credit Karma and try various things to see how your credit score is affected. That relates indirectly to your credit limits but in general if you find something that increases your score then it might also help get your limit raised.

Aside from that, Mr. Cuke is right - banks only want to lend to people who don't need it! But joking aside, they are concerned with the same things you would be if you loaned someone money. You want to make sure the person has the means to pay you back (income), the integrity and money management ability to do so (good history of paying on time and similar amounts), and that they are not going to skip out (owned assets like real estate, etc. and a long history at the address).

Different banks/lenders will look at things slightly differently but those are the basics. If you are weak in one area (just moved, rent, etc.) then you will need to convince them that you make it up in other areas like high income or long credit history.



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