High Limit Credit Card Deals Require a Credit Score Improvement

May 26, 2010
Asa Ghaffar

How to Get a $10,000 Credit Limit - yamasoba

Need to get approval for a card with at least a $10,000 credit limit? Find out quick ways to improve a credit score for a high limit credit card.

High limit credit card offers make managing money and paying for larger purchases a lot easier. In order to get approval for a $10,000 credit limit card, it is necessary to have a better credit rating than the bulk of other applicants. This is because issuers can now afford to cherry-pick their customers and reject those who appear a little suspect. Performing some credit history repair won't just increase the likelihood of application success, it has the additional benefit of reducing the cost of long term borrowing.

Why is it Harder to Get a High Limit Credit Card Offer?

Approval for higher limit credit card offers is more difficult to get than it used to be. Issuers have tightened their lending criteria in recent years due to rising levels of default amongst their existing customer base. Fitch Ratings stated that the credit card default rate stood at 13.01% in April 2010. Over-lending regularly translates to bad debt further down-the-line. Some credit score improvement will normally be necessary to get approval for the highest credit limit deals.

Fast Credit Score Improvement for $10,000 Credit Limit Card Approval

Higher limit credit card offers won't be available for customers with an adverse credit history, but those with fair or good credit have a reasonable chance of being accepted. Customers can take steps to achieve an excellent credit rating by correcting credit report errors, reducing the amount they owe and changing their overall credit distribution. There are some strange factors that lead to a lower credit rating so making a series of changes early on can help to ensure that these problems need never arise.

Higher Limit Credit Card Deal Advice and Tips

Never max-out a credit card as it will lead to a score falling by approximately 15 to 30 points. This rule applies regardless of whether the balance is fully paid-off at the end of the month.
Having multiple credit cards helps credit distribution. A low percentage of debt, expressed as a percentage of the total available credit, leads to a better credit score rating. Credit utilization is very important.
It is advisable to use no more than 10 to 30% of the allocated credit limit in any one month. Liz Pulliam-Weston of MSN Money stated that: "You typically can increase your scores by limiting your charges to 30% or less of a card's limit."
Don't cancel credit cards, use them every now and again instead.
Avoid performing a balance transfer from a high to low limit credit card.
Request a free report and check for credit report errors. The Fair Credit Reporting Act allows the consumer or a credit repair attorney to correct any inaccuracies.
Pay down debt with savings for a credit score improvement.
Don't make too many applications for credit in a short space of time.

A High Limit Credit Card Requires a Better Credit Rating

It is important to take steps to achieve credit score improvement prior to applying for a $10,000 credit limit card. The number of applications approved for higher limit credit cards has gone down considerably in recent years, but it is still possible to get accepted. Issuers go to great lengths to provide the eligibility criteria so only apply for credit when the likelihood of acceptance is relatively high.