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01-01-2011, 01:31 PM
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#1 | | My homepage has been set to RS
Join Date: Aug 2002 Location: AB/BC
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| Raising VISA credit limit??
Usually visa will send me a letter every 6months-1 year saying they've raised my credit limit $500-1000.
This time they sent me a letter saying they want to increase my credit limit subject to my approval. They want my employers info and income.
I pay it off every month if I even use it and the credit limit is already way more than I would ever spend on it.
Is there any advantage to having the higher credit limit? Or do they just want me to spend more so they can make more money?
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01-02-2011, 05:38 PM
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#2 | | I keep RS good
Join Date: May 2001 Location: Cosmos
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dont raise it unless you know you're gonna be spending more, like buying a car with a credit card lol.
they just want your money.
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01-03-2011, 07:02 PM
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#3 | | Banned (ABWS)
Join Date: Jun 2010 Location: Canada
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^ If only dealerships will let you buy a car on a credit card. They usually cap it at $2000-5000 max, remainder by cheque / cash.
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01-04-2011, 01:07 AM
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#4 | | HELP ME PLS!!!
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canada has changed the law and now they can't up your limit without asking you. which is a good thing. mine kept getting raised every year before and it was getting ridiculas. I'm never going to spend anywhere near my limit.
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01-04-2011, 10:34 AM
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#5 | | Diagonally parked in a parallel universe
Join Date: Aug 2009 Location: Coquitlam
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Given VISA robs merchants of 1-2%, most places don't like you using it for more then $5000 (some places less).
And yeah the way the law works now they need your permission to increase your credit limit. If you don't need it, it's probably best not to take it.
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01-04-2011, 12:34 PM
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#6 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
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| Quote:
Originally Posted by sdubfid  Usually visa will send me a letter every 6months-1 year saying they've raised my credit limit $500-1000.
This time they sent me a letter saying they want to increase my credit limit subject to my approval. They want my employers info and income.
I pay it off every month if I even use it and the credit limit is already way more than I would ever spend on it.
Is there any advantage to having the higher credit limit? Or do they just want me to spend more so they can make more money? |
You should have a limit that is relevant to your needs. For an average person who uses their credit card for groceries, utility bills, etc. i say a limit of $6-7000 is more than adequate, especially if you pay ur balance at the end of the month.
If you have a limit of say 10,20,35k the chances of qualifying for a loan from any bank is low due the amount of credit you have available. When the bank calculates your debt service ratio, they pretend that you have used up your entire credit limit of 10,20,35k. The result of that determines how much they will loan you, if at all. Lower limit, less risk for the bank, because they know that after they approve you for a 240k loan, you will not go and spend 35k on the cc - and not be able to pay off your loan payment.
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Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
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01-04-2011, 12:44 PM
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#7 | | I contribute to threads in the offtopic forum
Join Date: Mar 2004 Location: Vancouver
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Take as much as you can get!
If you are someone that has the self control to not spend the money then it is a benefit later in life.
For instance, if you are looking at purchasing a new home. The bank will look at all your available assets (that included credit cards). If you have a higher limit that will benefit you there. They may ask you to lower you limit if they approve your home lone just to make it harder for you to miss a payment to them.
It can be very beneficial to you if you have a large limit on your cards but you have to be wise about it.
Keep in mind, if they approve you for an increase you can always take the increase when you feel you would need it.
Just my 2 cents.
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01-04-2011, 12:51 PM
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#8 | | Da Vinci's real masterpiece: The Mona Diesel
Join Date: Nov 2007 Location: Richmond
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| Quote:
Originally Posted by FDTT Take as much as you can get!
If you are someone that has the self control to not spend the money then it is a benefit later in life.
For instance, if you are looking at purchasing a new home. The bank will look at all your available assets (that included credit cards). If you have a higher limit that will benefit you there. They may ask you to lower you limit if they approve your home lone just to make it harder for you to miss a payment to them.
It can be very beneficial to you if you have a large limit on your cards but you have to be wise about it.
Keep in mind, if they approve you for an increase you can always take the increase when you feel you would need it.
Just my 2 cents. | Quote:
Originally Posted by tiger_handheld You should have a limit that is relevant to your needs. For an average person who uses their credit card for groceries, utility bills, etc. i say a limit of $6-7000 is more than adequate, especially if you pay ur balance at the end of the month.
If you have a limit of say 10,20,35k the chances of qualifying for a loan from any bank is low due the amount of credit you have available. When the bank calculates your debt service ratio, they pretend that you have used up your entire credit limit of 10,20,35k. The result of that determines how much they will loan you, if at all. Lower limit, less risk for the bank, because they know that after they approve you for a 240k loan, you will not go and spend 35k on the cc - and not be able to pay off your loan payment. |
Hmm two contradictory statements. Who should I listen to  | |
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01-04-2011, 01:10 PM
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#9 | | I contribute to threads in the offtopic forum
Join Date: Mar 2004 Location: Vancouver
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Listen to what ever works best for you.
Talk to a credit consultant. That is what I did and that is the advice I was given by them.
When it came down to it I have more assets for a big purchase and the bank saw that as a good thing. I did have to get rid of some of the limit but it was a good thing for me at the time.
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01-04-2011, 01:15 PM
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#10 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
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| Quote:
Originally Posted by Jsunu Hmm two contradictory statements. Who should I listen to | listen to me because i was told this by a RBC credit manager. I decreased my visa limit because i didn't want any additional credit.
I'm not sure if credit cards are viewed as assets because if you carry a balance its a liability. Usually an asset is defined as something you can sell and get some money back ( property, car, collections, etc..). with a credit card you can't sell it and get money back.
__________________
Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
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01-04-2011, 01:16 PM
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#11 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
Posts: 8,138
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| Quote:
Originally Posted by FDTT Listen to what ever works best for you.
Talk to a credit consultant. That is what I did and that is the advice I was given by them.
When it came down to it I have more assets for a big purchase and the bank saw that as a good thing. I did have to get rid of some of the limit but it was a good thing for me at the time. | point proven. They probably decreased your limit so you fall within the proper debt service ratio.
__________________
Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
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01-04-2011, 01:28 PM
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#12 | | Wunder? Wonder?? Wander???
Join Date: Mar 2002 Location: Vancouver
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As long as your not some retard that over spends and cant make full payments then a higher limit is beneficial. My limit is 25K, and its handy at times when you need to charge larger purchases and for emergencies. I try to max on points too for flights.
Just dont fall into the trap of signing up for multiple cards. Thats where it can impact your credit rating when your applying for a loan or mortgage.
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01-04-2011, 01:40 PM
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#13 | | Da Vinci's real masterpiece: The Mona Diesel
Join Date: Nov 2007 Location: Richmond
Posts: 1,797
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| Quote:
Originally Posted by dave123 As long as your not some retard that over spends and cant make full payments then a higher limit is beneficial. My limit is 25K, and its handy at times when you need to charge larger purchases and for emergencies. I try to max on points too for flights.
Just dont fall into the trap of signing up for multiple cards. Thats where it can impact your credit rating when your applying for a loan or mortgage. | I am just trying to see whether or no having a higher limit is benificial in the long run. Maybe ill just get pre-approved for a moragage now to see how much I can borrow in the future.
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01-04-2011, 05:43 PM
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#14 | | RS controls my life!
Join Date: Jul 2010 Location: Vancouver
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| Quote:
Originally Posted by dave123 As long as your not some retard that over spends and cant make full payments then a higher limit is beneficial. My limit is 25K, and its handy at times when you need to charge larger purchases and for emergencies. I try to max on points too for flights.
Just dont fall into the trap of signing up for multiple cards. Thats where it can impact your credit rating when your applying for a loan or mortgage. | emergencies should never be run on a credit card. use a line of credit.
a person would be stupid to put a 4k home repair bill on a credit card without having cash or a payment plan to pay it back....
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01-04-2011, 10:11 PM
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#15 | | Ready to be Man handled by RS!
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Credit cards are NEVER assets, assets are what u OWN, like cars, house, investments, etc, what banks look for in particular when u apply for a loan are liquid assets (savings, non-registered investments, cash) and your networth which are assets minus liabilities, if its positive then you're in good shape.
They dont usually take the whole limit of your credit card when they calculate you debt serving ratio, most banks take a percentage, usually 3%. And if they are concerned about your high limit on your Visas, when u apply for lets say a mortgage, they will just tell u to decrease the limit.
What affects your credit worthiness more is how u handle it, not how much/little u have
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01-04-2011, 10:15 PM
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#16 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
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| Quote:
Originally Posted by ehhhwik Credit cards are NEVER assets, assets are what u OWN, like cars, house, investments, etc, what banks look for in particular when u apply for a loan are liquid assets (savings, non-registered investments, cash) and your networth which are assets minus liabilities, if its positive then you're in good shape.
They dont usually take the whole limit of your credit card when they calculate you debt serving ratio, most banks take a percentage, usually 3%. And if they are concerned about your high limit on your Visas, when u apply for lets say a mortgage, they will just tell u to decrease the limit.
What affects your credit worthiness more is how u handle it, not how much/little u have | does that differ from bank to bank or is it pretty standard? I ask cuz i was told 100% from RBC. regardless +1 to ur post.
__________________
Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
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01-05-2011, 02:29 PM
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#17 | | Banned (ABWS)
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| Quote:
Originally Posted by xmisstrinh emergencies should never be run on a credit card. use a line of credit.
a person would be stupid to put a 4k home repair bill on a credit card without having cash or a payment plan to pay it back.... | Using a CC is fine as long as you have the means to back it up.
When I traveled across the country I ran into a $1K repair bill, threw it on the CC and paid it off when the bill came. CC is nearly universally accepted, with a LOC you've got to find a way to transfer the funds to be used, which is not hard using mobile banking, yet not as easy as a CC, nor gains you points.
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01-06-2011, 08:29 PM
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#18 | | Wunder? Wonder?? Wander???
Join Date: Mar 2002 Location: Vancouver
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| Quote:
Originally Posted by xmisstrinh emergencies should never be run on a credit card. use a line of credit.
a person would be stupid to put a 4k home repair bill on a credit card without having cash or a payment plan to pay it back.... | A line of credit is good since it has a lower interest rate but I was referring to emergencies like when your in another country and your flight is cancelled or you missed it and you need money to cover costs. Unless you have an HSBC bank account your most likely not going to be able to access a line of credit abroad.
Also if you need to reserve say a hotel or car rental and your credit card limit is very low the pre-authorization that some vendors take may not go through on your card.
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