Increasing your credit card limit....

[Lissy]

I've discovered the secret for how to get the bank to raise your credit card limit!
Put a lot of stuff on your card and max it out. Let the balance sit for a few months, just pay the minimum, then the next month pay it off, and continue to pay it off for a couple of months. I guarantee you'll have an offer for an increased limit within 3 months. This has happened to us twice this year, with different banks.
Or, if you want another credit card, pay off a home loan. Next thing you know you'll get a phone call from the bank offering you a credit card. Of course, if you don't want it, don't make the mistake my husband did and say you would like further information in the mail. He ended up with a credit card instead.

 

[geoffw]

Careful though. That can affect serviceability. The bank assumes that the credit card will be always maxed out, and takes the amount required to pay back as an ongoing expense.

 

[David E-Noosa]

The point Geoff made is correct, on a loan application the lender is only interested in the card limit not how much you have on it. To understand why they have to assume you could walk out their door after getting a loan approval and max out your card which obviously would affect most peoples serviceability.

But your example of how they might look at you as a good "mark" for a limit increase is probably correct. CC abuse is on the rise but the letters keep on comming from bank to raise limits.... go figure.

 

[Lissy]

I agree - credit cards are not good for your serviceability! We turn down offers to raise limits, but I am amazed how the same pattern repeated itself.

 

[Dos]

I even received one in the mail last week that had all of my details already typed into the form and "All I had to do" was check my details, sign on the dotted line, send it back and I would have a CC!!

No wonder people get in lots of trouble with CC debt!!!

Dos.

 

[Ali G]

I had a smiliar thing happen to me a while back too Dos... only thing was I was at uni and was not even working at the time!! A $5000 limit for someone with no income??? Crazy stuff.

 

[Sim]

Funnily enough, I almost never get offers to increase my credit card limit.

My wife gets offered new cards all the time (not increases in our existing cards) ... but she shops less than I do !

I did, however, get offered a platinum amex card recently ... but I think I'll hang out for a Centurion Amex card ... the $2800 annual fee will need some careful management (Fee for Platinum is only $900)