How much should I request as a credit limit?

[Techno]

Hello,

I have had a Platinum card for the past 3 years with the credit limit of $1,000.00. I normally buy something on the card and then pay it off with in two-tree months. So my is almost always at zero. Recently, the bank has given me access (on-line) to increase my credit limit on the card and I am going to be moving soon and need a lot of money (currently saving up) for furniture and stuff. So increasing the limit would be a big help to me and I will still be able to pay off the card with in a couple months no problem. I'm wondering what is a limit that I should ask for that is not something that the bank is going to look at and start laughing. I was thinking between $3,000 and $5,000. I know my credit score is around 700 give or take 10 points. I also am making 41K+ a year and have two loans which is my car (owe 12,000) and a Kirby Vacuum (owe $900).

 

[dullard]

Usually when you ask, they tell you the number (not the other way around). You may attempt to go over their number, but that is not likely going to occur. That said, I don't think they would have trouble raising it to $2000 or $2500 if you push.

Pointers:
1) STOP using your CC as a loan. Paying it off in two-three months is a horrible waste of money. Pay it off every month.
2) Most furnature stores have no interest loans. Get one of these instead. Pay it off before they start charging interest. And be sure to never have a late payment.

 

[desk]

you took a loan out to by a vacuum?

 

[SuperSix]

As little as possible - increasing credit for the purpose you want is a very slippery slope. If you can't afford it,(cash) don't buy it.

 

[Reel]

42

 

[PowerMacG5]

I wouldn't be asking for a raise to your credit limit unless you can pay what you have right now off monthly. I have always payed my bill in full every month because I don't buy what I can't afford; and because of this my credit limit was raised from 1.5k to 4k (without me even asking) in only 5 or 6 months, and when I just got my new card from AmEx, the limit was immediately 2.3k.

 

[RossMAN]

Originally posted by: dullard
Usually when you ask, they tell you the number (not the other way around). You may attempt to go over their number, but that is not likely going to occur. That said, I don't think they would have trouble raising it to $2000 or $2500 if you push.

Pointers:
1) STOP using your CC as a loan. Paying it off in two-three months is a horrible waste of money. Pay it off every month.
2) Most furnature stores have no interest loans. Get one of these instead. Pay it off before they start charging interest. And be sure to never have a late payment.

Agreed and I would request a new limit of $2,500.00 ($1,500 increase request).

 

[royaldank]

You spend too much. Quit paying higher prices for all your stuff. Get a no interest loan or do without. Salvation Army, Goodwill, etc. all have temporary furniture you could buy for dirt cheap.

If you can't pay it off in a single month, you're wasting your money.

Full disclosure: It's been 8 years since I've had a CC. Other than hurting my credit score, it has made no difference in my life.

 

[Yossarian]

you spent over 2% of your year's income on a vacuum?

 

[tfinch2]

Originally posted by: ReelC00L
42

 

[GagHalfrunt]

You actually want to keep your available credit as low as possible. When deciding what sort of credit to offer creditors look at income, past payment history, current credit burden and current credit limits. If a lender decides that you can be trusted with $10,000 in credit, if you've got a $5,000 card and a $3,000 card that'll count as $8,000 of your $10,000 and that lender will only offer you $2,000 more. You have to look at your credit as a giant pie and each lender slices off a piece when they give you an actual loan (like for a car) or a potential loan (like a credit card). What each one gives you is less available for the others to give you. When all the slices are used up you might be cooked even with perfect credit and on-time payments.

You need to be realistic about your credit needs and get a card that covers those needs with a little to spare for emergencies. It might sound cool to have a $25,000 credit limit, but if you never charge more than $2,000 a month it's stupid and wasteful to have a limit beyond $3,000.

 

[Techno]

Hi All,

As for the vacuum. It is a $2,000 kirby that is a vacuum but also washes carpets, paints a house and does every other thing my computer can't. Its also my dads. He really wanted it and didn't have the $2,000 or credit score to get financing on it. So I had them put the kirby threw me as my credit score is a lot higher then his. So he pays monthly payments of $100 each month. As he pays it off, my score gets higher. As for the credit card, I get paid evey week and my online banking is set to pay $200 every other week untill the credit card is payed off.

I work for the same company that has the credit card (JP Morgan Chase). So employees get to "request" an amount rather then being a non employee and the bank tells you what you are getting...

 

[RossMAN]

Techno,

I don't know how to put this but bluntly, you wasted $2k on a POS glorified do-it-all vacuum.

Repeat after me. Dyson > Kirby and 1/4th the price ($500).

 

[Techno]

I have heard of Dyson in the last few months. Didn't hear about it 11 months ago when my dad wanted the kirby.

 

[WingZero94]

It's actually good to have some open credit. If other institutions see that you have been entrusted with a decent size credit limit, that is good. I got that information from my three bureau credit report.

 

[RossMAN]

Originally posted by: WingZero94
It's actually good to have some open credit. If other institutions see that you have been entrusted with a decent size credit limit, that is good. I got that information from my three bureau credit report.

Open and active credit = good

Keeping a balance for 2 or 3 months purposely to "help" your credit = bad

 

[imported_Pablo]

Originally posted by: desk
you took a loan out to by a vacuum?

 

[WingZero94]

Originally posted by: RossMAN

Originally posted by: WingZero94
It's actually good to have some open credit. If other institutions see that you have been entrusted with a decent size credit limit, that is good. I got that information from my three bureau credit report.

Open and active credit = good

Keeping a balance for 2 or 3 months purposely to "help" your credit = bad

agreed

 

[SuperSix]

Originally posted by: RossMAN

Originally posted by: WingZero94
It's actually good to have some open credit. If other institutions see that you have been entrusted with a decent size credit limit, that is good. I got that information from my three bureau credit report.

Open and active credit = good

Keeping a balance for 2 or 3 months purposely to "help" your credit = bad

True. THe challenge is keeping the credit line "open".

Be careful OP..

 

[dullard]

Originally posted by: RossMAN
Dyson > Kirby and 1/4th the price ($500).

Dyson is honest when they say its "the only vacuum that doesn't lose suction". Normal vacuums start at high suction and drop down to medium-low when the bag is full. However, Dyson hides a lot of the truth: Dyson starts at medium-low suction and stays there. Independant reviews have given Dyson fairly poor ratings.

Kirby is expensive, but they are well known to last for decades and have the most features. Me, I'd rather spend $150 on a top rated vacuum and rent a shampooer on occasion.

 

[rh71]

I'd say $2-$3k. The most I ever had to charge was for a banquet hall for my wedding (in the teens of Ks) but I don't think I have ever had a balance over $2k otherwise.

I really don't like carrying such a high ceiling even if I'm "protected".