Getting approved for a high limit credit card is important for many Americans that are looking to be able to make large purchases on a monthly basis, or for those that want to consolidate debts into one account to minimize monthly bills.
Unfortunately, the process of getting approved for a high limit credit card is not exactly an easy task.
How Banks Determine Your Credit Limit
When you submit an application for a credit card, your information is reviewed by the credit underwriting department of the card issuer. This department takes into consideration factors such as your credit score, household income and past performance on accounts.
Many times credit card companies will set customers up with a credit line lower than they desire. If this happens to you, don’t worry, there are some options for you.
Many banks will allow you to fax in additional financial information such as tax returns, etc. if you would like the credit department to take another look at what kind of credit limit they will allow you.
Sometimes certain cards are set up with a “standard” credit line and it is up to you to make the request if you would like to have more available credit.
Another Option Of Increasing A Credit Card’s Credit Line
Some companies will also allow you to do an account consolidation. This involves merging the credit limits of 2 credit cards (both issued by the same bank of course) into one card, closing down one of the accounts. Not all banks allow this, but it is certainly worth placing a quick call to find out.
What Does No Preset Spending Limit Mean?
If the main reason you desire a high credit limit credit card is for making large purchases each month that will be paid off in full each statement, you will probably find that it is much easier to find and apply for a credit card with no preset spending limit.
“No Present Spending Limit” cards still have a credit limit, but you are allowed to go over it as long as you pay off the difference each month. For example, if you have a credit card with a $3000 credit limit, but no preset spending limit, and you made $8500 worth of purchases in a month, the requirement by the card issuer would be that you pay at least $5,501 to take your balance down below the credit limit in order to avoid over the credit limit fees.
The Solution
There is one credit card company that is more or less known for offering high credit limits… American Express. They also currently have a nice selection of rewards offerings with no preset spending limit.
Check out current American Express credit card offers
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