Curious about Credit Limit.

[PowerMacG5]

I just got approved for my first credit card, a Chase Platinum MasterCard for students with a 300 dollar limit. I was just curious how long you should wait before asking for a higher credit limit. I will be paying it off in full every month, and was just curious, because if I ever want to purchase something in excess of 2 hundred dollars or more, it leaves very little room left on the card, and in the upcoming months (after may) I intend to purchase a few things in preparation for college. Right now, the card will mainly be used for gas, and smaller purchases (a CD here and there, or some other small things). I am also waiting to see if I get approved for an American Express Blue for Students, and see what limit they give me. Thanks in advance.

EDIT: Also, I was told by a financial planner that works for my parents that applying for a few credit cards as a first one when you have no credit will not impact your credit rating, is this true? Because I did so, and then a friend of mine told me that it will impact my report. I know I should trust the pro over a friend, but figured I'd ask here too.

 

[LS20]

pay off your balance online, then use it again for another purchase

 

[PowerMacG5]

Originally posted by: LS20
pay off your balance online, then use it again for another purchase

Well, I guess I could do that as well, but would prefer the security of having a larger limit in case I am not by a computer to pay it off at the moment I need to make a purchase.

 

[PowerMacG5]

Bump.

 

[Mallow]

I'm with MBNA and I have been a good customer for over 3 years. I never ask for credit limit raises but they give one to me every other month for being a good customer. I started @ 2000 and now I'm at 9500. Maybe once you prove to be a good consumer who won't stiff them they will raise it automatically?

 

[Gibson486]

it does not effect your credit rating (if it does, its small), but applying for alot does raise flags......

 

[PowerMacG5]

Originally posted by: Mallow
I'm with MBNA and I have been a good customer for over 3 years. I never ask for credit limit raises but they give one to me every other month for being a good customer. I started @ 2000 and now I'm at 9500. Maybe once you prove to be a good consumer who won't stiff them they will raise it automatically?

If it works like that, then nice. Like I said, this is my first credit card, so I am kind of new to this whole thing.

 

[PowerMacG5]

Originally posted by: Gibson486
it does not effect your credit rating (if it does, its small), but applying for alot does raise flags......

Well, if it's a first credit card and have no credit, are the "flags" as sever as if I had already established some form of credit?

 

[jdogg707]

Originally posted by: Marauder911

Originally posted by: Gibson486
it does not effect your credit rating (if it does, its small), but applying for alot does raise flags......

Well, if it's a first credit card and have no credit, are the "flags" as sever as if I had already established some form of credit?

If you apply for a bunch of credit cards/loans within a time period it will bring down your credit score and make you appear as a higher risk than someone who does not actively seek credit all the time. I would suggest trying for something at MBNA, I love my card, go it with a $600 limit and am now at $1200 after about 6 months. Not bad for one of my first credit cards. The big thing that can hurt your credit score will be missing/late payments. I would not recommend applying for anymore cards right now, use this one for six months and then ask for a higher limit or apply for another card.

 

[GtPrOjEcTX]

my first credit card (Capital One, which sucked), started me at $300, but bumped me to $1200 within 2 months and then to $2000 within another 2 months....and stayed there for many many more months until I closed the account.

do good and it'll increase on its own.

 

[TonyG]

I figured that I would give my credit about a year, then try for a better card with a higher limit. I have had my card since last November. I got my card from Wells Fargo when I signed for a student checking account as overdraft protection. They based the limit off of a percentage of the money I made a month, $700 limit.
I set mine up to make the monthly minimum payment directly from my checking account, so I don't have to worry about being late with the payment.

 

[RossMAN]

Marauder911,

1) Do not apply for several credit cards & loans within a short period of time. Be thankful that you were approved and realize that it's going to take T I M E to prove that you are responsible with your credit.

2) Use your credit card. Make at least 1 purchase a month. This does not mean charging $2.99 at 7 Eleven just because you have a credit card.

3) Pay off your entire credit card balance in full every month when you receive the bill.

4) Wait at least 6 months before requesting a credit limit increase (14 months is even better since it shows 1 year of history and most credit bureau's are 2 months behind).

5) Always always make your payments on time or early, even if you can't payoff the entire balance. Always pay at least the minimum payment due.

 

[PowerMacG5]

Originally posted by: RossMAN
Marauder911,

1) Do not apply for several credit cards & loans within a short period of time. Be thankful that you were approved and realize that it's going to take T I M E to prove that you are responsible with your credit.

2) Use your credit card. Make at least 1 purchase a month. This does not mean charging $2.99 at 7 Eleven just because you have a credit card.

3) Pay off your entire credit card balance in full every month when you receive the bill.

4) Wait at least 6 months before requesting a credit limit increase (14 months is even better since it shows 1 year of history and most credit bureau's are 2 months behind).

5) Always always make your payments on time or early, even if you can't payoff the entire balance. Always pay at least the minimum payment due.

Alright, thanks for all the welcome suggestion, and I definitely will use what you said. I definitely plan on using the credit card. Like I said, I will mainly use it for gasoline at this point, which means $20 every half tank .

 

[KingNothing]

My bank gives me a higher limit on my Visa every now and then. I'm up to 6500 on it now. I've had that card for almost three years.

I called up American Express a couple days ago and asked for a $5000 credit limit (up from $1600) and they approved it. I've had that card for almost a year.

I'm almost 21, if it matters.

 

[BigJimbo]

i was told you you build credit buy constantly paying it off...pay 3 times what your minimal is...so if your minimal is $10 pay 30....and use it as much as you can..but dont completely pay it off every month

 

[PowerMacG5]

Originally posted by: BigJimbo
i was told you you build credit buy constantly paying it off...pay 3 times what your minimal is...so if your minimal is $10 pay 30....and use it as much as you can..but dont completely pay it off every month

Why would you not pay it off in full every month? That makes no sense to me. I plan on paying it off in full every month to avoid two things, debt, and the disgusting interest rates on student cards.

 

[Nocturnal]

I just received another credit increase on my gas card. I'm up to $1,000.00 on it lol.

 

[Cable God]

Originally posted by: RossMAN
Marauder911,

1) Do not apply for several credit cards & loans within a short period of time. Be thankful that you were approved and realize that it's going to take T I M E to prove that you are responsible with your credit. *Nope, FICO scoring works like this as far as inquiries: if you shop around for a house, and get, say 14 inquiries within a 14 day time period, it SHOWS 14 inquiries, but FICO scoring ONLY knocks you for ONE "hard" inquiry, AS LONG as the inquiries are of the same TYPE (IE: All auto or mortgage, or CC related) within a 14 day window.

2) Use your credit card. Make at least 1 purchase a month. This does not mean charging $2.99 at 7 Eleven just because you have a credit card. **I would keep your utilization under 10% of the current limit to maximize your score.

3) Pay off your entire credit card balance in full every month when you receive the bill. **Nope, NOT revolving any credit at all with a card issuer is not looked upon really favorably, since they aren't making anything off you at all. Float under a 10% balance of your limit month to month and this WILL be looked upon favorably by the creditor and other potential creditors.

4) Wait at least 6 months before requesting a credit limit increase (14 months is even better since it shows 1 year of history and most credit bureau's are 2 months behind). ** This is very true.

5) Always always make your payments on time or early, even if you can't payoff the entire balance. Always pay at least the minimum payment due.

**Partly true. If you can't pay your balance down to under 10% of the limit, then pay AT LEAST one dollar OVER the minimum, as they will notate that you ALWAYS pay mor than the minimum. THere are a few creditors who DO this and use it as criteria for future business you may do with them. Trust me, as far as credit goes, I have been around the block SEVERAL times. www.creditboards.com will answer all your questions.