Credit Tips: Higher Limit Credit Cards

Posted On: February 1, 2006

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Posted: Sat Jan 01, 2005 12:58 am
Post subject: Higher Limit Credit Cards

Ann
Date: 10/20/2000 11:26 pm CDT

For the past 2 years I have been working very hard to reestablish my credit. Prior to that time I had about 7 collection accounts which have all been paid in full and are reporting as such to the bureaus. For the past 12 months I have the following accounts reporting with NO lates:

Advanta Mortgage
Providian credit card ($2,300 limit)
Cross Country card ($1,100 limit)
Bank First ($350 limit)
Capital One ($300 limit)
Chrysler Financial (car lease for the past 9 months)

I also had a $3,000 installment loan with no late pays at a local bank for 24 months which I just paid off.
My credit scores range from 598 to 667
All of my cards are paid down with no more than $50 outstanding on each one. Also, I have never filed for BK.
My debt to imcome ratio is less than 25%

I want to obtain some higher limit cards ($5,000 - $10,000). WHICH LENDERS TEND TO OFFER THE EASIEST QUALIFICATION STANDARD FOR HIGHER LIMIT CARDS? I am afraid that I will lower my credit scores too much if I apply at to many places and get turned down. Therefore I would like to apply with only 1 or 2 lenders that will have the best chance of approving me.

I would really appreciate any recommendations that you might have. Thank You.

archive
Posted: Sat Jan 01, 2005 12:58 am
Post subject: Higher Limit Credit Cards

dave
Date: 10/21/2000 2:12 pm CDT

Those seven collection accounts, although paid, are really killing your credit score but they will become less important as they age. On the positive side, you have an excellent debt to credit limit ratio. Debt to income ratio is a little high. It also sounds like all of your trade lines are recent. In the credit world, 12 months of perfect payment history combined with the collection accounts is probably not enough to get prime credit cards with most banks. I would suggest that you wait a while and continue building your credit. However, if you want to test the waters, you might try citibank. If you go to the website, you will notice that many of the cards are advertised in the 20+ APR range. This is new. Until recently, citibank was promoting its cards at 14.9. This suggests that citibank is now recruiting business from people whose credit history has some bumps. If you are approved, you are likely to get the highest rate. Don’t despair. Once you’re in, you can get the rate reduced after you’re established. Credit limits are generous but even if you don’t get a high credit line, you’re better off with this bank than the subprimes and you won’t be stuck for ever with a low credit limit. Hope this helps and report back on the results because that helps others.

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Posted: Sat Jan 01, 2005 12:58 am
Post subject: Higher Limit Credit Cards

tim
Date: 10/22/2000 6:17 pm CDT

Good advice Dave. My situation is similar and I will applt to Citibank although I have been turned down for about 10 new cards in the past 2 months with lenders such as Household and MNBA.