High Limit Credit Cards With Bad Credit: Learn to Get Approved
Author: Lara Sawyer
Many people think credit cards with high credit limits can not be obtained if you have bad credit but that is not necessarily true. Though your credit score is an important variable when it comes to assessing your credit limits, there are other variables that are just as important or even more important. Thus, by correctly monitoring these variables and preparing yourself for the credit card application you can boost your chances of getting a higher credit limit.
Variables That Determine Your Credit Limit
When assessing your credit limit, the credit card company takes into account many different variables. And as explained in the introduction, though the credit score is an important factor it is not the only one or even the main one. Since credit limits are a matter of amounts, it is your income that will determine your credit limit at first. Also, your history with the credit card company will be an important factor too. Most commonly, you can get higher credit limits with a company that you already have an account with.
Other variables are external and though you can not control them, you can take advantage of them if you know how they work. For instance, knowing that the credit card market is highly competitive, you can benefit from that fact by contacting credit card companies and letting them know what kind of limit the other companies have offered you. I assure you that they will do an effort to improve all previous offers. Also, if you are willing to pay a higher interest rate, by searching for credit card offers on the internet you will find several promotions offering high credit limits in exchange for slightly higher interest rates.
Lines of Credit and Available Income
All lines of credit (and credit cards are lines of credit) base their limits on the applicant’s ability to repay their debt. Thus, the client’s income is an essential variable when it comes to determining the amount of money you can borrow on a credit card line of credit. So, if you want to obtain a high limit credit card whether you can show proof of a suitable income or not is essential. For those who are employed there is no much to do but those who are self-employed can make sure that their tax presentations show the true income they obtain in order to get a higher credit limit when applying for a credit card.
Also, there are credit cards, lines of credit and different loan products that allow you to apply with stated income. This means that they will take into consideration the amount of money that you declare on your application instead of requesting paycheck copies or tax presentations. This is particularly useful for those that cannot prove what their income is or for those that have a basic wage plus commissions that vary from one month to another.
This is the most important factor on credit card applications but if you really want to boost your chances of getting a higher credit limit on your new credit cards, you need to shop around and compare what the different financial companies have to offer. Request different quotes and compare the rates and the credit limits. We always suggest finding a balance. High interest rate cards offer higher credit limits but you should try to get a moderate rate with the highest credit limit possible.
Article Source: http://www.articlesbase.com/credit-articles/high-limit-credit-cards-with-bad-credit-learn-to-get-approved-304130.html
About the Author
Lara Sawyer is a professional loan advisor used to solving bad credit problems and helping people secure home loans, car loans, personal loans, unsecured credit cards, home equity loans, refinance mortgage loans and plenty of other financial products. Whether you want to learn more about High Limit Credit Cards and Lines of Credit or find information about other loan types, just visit: http://www.fastguaranteedloans.com/
Credit cards after bankruptcy?
Please do not judge me or post nasty comments about bankruptcy…
My husband lost his VERY good paying job and could only get a job paying about $50,000 less. We got into a bad spot and are filing for bankruptcy. I am curious how long it will take to get a credit card after the bankruptcy discharge? We want to re-build our credit ASAP.
My husband was lucky enough to get a job paying MORE than his original job. He just started last week so things are looking up. We still have to file because things are so far gone.
Does debt consolidation/reduction (for credit cards) hurt your credit as bad as bankruptcy?
do i max out on all of my credit cards before filing bankruptcy?
my house will be in foreclosure and will have bad credit anyways, so will bankruptcy do me any good
Is it any worst to just stop paying credit cards vs declaring bankruptcy?
I make too much income (state median income guideline) to qualify for a Chapter 7 bankruptcy, and Chapter 13 will not suffice. Why not just stop paying the credit cards? They can’t arrest me.
Credit cards after Bankruptcy?
Ok. So, my husband and I had to file bankruptcy at the end of last year because both our jobs laid us off about the same time and we both hit significant pay cuts. We had bought a house when we were married and when we lost our jobs, it became tough to keep the payments on the house, utilities etc. Also we had a newborn shortly after it happened. So basically a lot of things happening at bad times.
Not everyone who files bankruptcy are bad people with credit. We had absolute perfect credit. Paid our bills early and used the credit cards we had to pay certain bills then used the cash we had for those bills to pay credit cards back. We had a very good system going and it was all working out for us. Then all this happened.
My question is, how do we start building back our credit? Besides paying bills on time, that is. We have been searching for credit cards to help get us started and every single one we find tells us to pay processing fees. (Secured, in other words) Are there any companies that do not make you prepay or make a deposit for bad credit applicants?
There is an important trip coming up so that I can see family that I have not seen for half my life and we will need extra money in which we will not have until after the trip. A credit card would really help us out and we could build credit at the same time (kill 2 birds with one stone)
I really need some advice. Thanks to everyone who is willing to help.
Age of Reasons: It was a good system because it worked for us for 2 years. Unfortunate circumstances does not change that.
To be totally honest with yourself and your creditors you really should file for chapter 13 bankruptcy. In chapter 13 they usually reduce the amount of debit that you have to pay back to a manageable amount and you will have only one monthly payment. If you just ignore and stop paying on the credit cards you not only ruin your credit history, but no one will lend you money for a long time since you would be a thief.
The Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% – Payment History
* 30% – Credit to Debt Ratio
* 15% – Credit History
* 10% – New Credit
* 10% – Credit Types in Use
A small loan consolidation with low interest is the best (for credit cards)I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.htmlGood luck!
You are not going to be able to get a credit card with a high limit this soon after bankruptcy and the only unsecured cards you can get will have fees almost equal to your credit line as well as a high APR.
You can try for a secured credit card. Go to a credit union (they are typically much more understanding and easier to work with than banks) and see about getting their secured card. Your credit line will be equal to the amount you deposit in a guarantor savings account. This account does not fund the card, rather it is used if you make a late payment or default. If you are granted a card, try not to go over 30% utilization of your total credit line at any time and, of course, always make your payments on time. After a year or two of responsible use, the CU may elect to convert your secured card to an unsecured card with a higher credit limit. CU secured cards are Visa or Mastercard branded, reported to the credit bureaus in the same way as unsecured cards and are an excellent way to establish or rebuild credit. Also, most credit unions will not charge an annual membership fee (banks will) and usually have lower APRs.
Talk to an accounts officer at the CU before you apply and tell him or her your situation. They will be able to tell you whether or not you will qualify. Don’t apply all over for different cards, only to get turned down (up to a 5 point ding to your FICO for every “hard pull” credit inquiry for the purpose of opening a new card). And definitely stay away from the big banks like BofA, Chase, Citi, etc. They all charge fees and most likely, you won’t be able to get one of their cards.
I got one from Orchard bank about 3-months after my bankruptcy discharged.
I could have had one much sooner but I kept waiting until I got one that the fees and rates were the lowest and Orchard bank was it.
I used it for everyday purchases and paid it off every month for about 10-months and then got the Providian that I still carry.
Looking back, I am glad that Orchard was there and helped my re-establish my credit.
Good luck. I went through it 6-years ago and now have better credit than I did before. Well over 700 score.
Borrowing debt you don’t intend to repay would be fraud, you could have bankruptcy disallowed and or end up in jail. Debt isn’t illegal but fraud is.