Which bank gives the highest credit limit
Credit card limit - up to here and no further
Even if a credit card tempts you to make unlimited purchases or payments, it has a limit. If you have reached this credit card limit, you can no longer pay with the card.To avoid this, you should always pay attention to your expenses and use the credit function of your card wisely. Choose the credit line that suits your financial situation. Of course, your bank also has a say in this.
What is the credit card limit?
Credit cards offer almost endless financial possibilities. For example, you can withdraw cash or pay online and offline at any time. Of course, that makes it easy to spend a lot of money on it. But at some point a limit is reached: The credit card limit is thatUpper limit of the credit linewho is available to you as the credit card holder: in. The bank determines which credit limit applies to the credit card. Both free credit cards and paid credit cards have a limit.
How does the bank set your credit card limit?
There are some criteria that the bank checksbefore setting a credit card limit. The first time this happens when you apply for the card. Which criteria these are in detail depends on the credit institution. As a rule, they include the following aspects in their considerations:
- Amount of your income
- Type and duration of your employment relationship
- Amount of your savings
- Existing investments
- Debt amount and frequency
- Loyalty to the bank: As a rule, the credit card limit is increased if you have remained loyal to the bank for many years and have demonstrated good payment behavior
Attention: Don't forget debit interest when paying in installments
If you're aiming for a particularly high credit card limit, you might want to reconsider. Depending on the credit card, there is a certain period of time in which you can settle your credit card debt without additional costs. Often, however, this is hardly longer than 30 days. You may then have to pay high fees for your loan in the form of interest. In the long run, the bridging loan will make your situation even worse. Therefore, a high credit limit is only suitable for customers who have a lot of financial leeway. Also Cards with monthly or daily debit have a limit. Here, however, the debts are debited from your checking account shortly afterwards or at the latest at the end of the month, so that you do not have to pay any interest.
The amount of the limit
We cannot provide any basic information on the amount of the credit card limit. Because whether you get a limit and how high it is depends on many factors. Of course, your creditworthiness is particularly decisive for assigning a credit card limit.
- Creditworthiness: YoursCreditworthiness is determined with the first application. Depending on the credit rating, there is a so-called credit limit as standard. This can be, for example, 500, 1,000 or 1,500 euros. In some cases, however, you can also use a clearhigher credit card limit get - if your credit rating is right. Credit card limits in the amount of two to three times the net monthly income are possible. You can find out how you can improve your credit rating in our SCHUFA guide.
- Payment behavior: If you have been with the bank for longer, you will often be granted a higher credit line after a while. If your payment behavior has always been good, the bank will reward you accordingly.
- Personal needs: Of course, your own needs can also be a criterion for the amount of the credit line. Frequent travelers or business people who frequently use their cards to book hotels and flights and thus achieve higher sales need a correspondingly high credit card limit. Conversely, you are of course also free to reduce your limit.
A limit gives security
Do not only see the card limit as a restriction, but also as a safety factor: you lose your credit card and you will Victim of fraud, so the money is gone for the time being. If you acted negligently, you will not get your money back in an emergency. Then you have a smaller limit. An excessive credit card limit, on the other hand, could take revenge in such a case. You should keep the credit line so low that it is not significantly above your actual needs. That gives security. If you regularly generate monthly sales of 200 euros with your credit card, you certainly do not need a limit of 2,000 euros, but at most 500 euros credit line.
Credit card limit used up: what to do?
If you have exhausted your credit limit, you cannot continue to use the card for the time being. However, banks often offer the basic option of increasing the credit line by Deposit money into the credit card account and so increase the credit. This is useful, for example, when you are on vacation abroad. If you notice that the limit is regularly insufficient, it is best to contact the bank and find a solution with them.
Credit cards without limit? For the very rich only
Credit cards without limit are only available to a few very rich people. Not even the famous black “Centurion” credit card from American Express, the epitome of luxury credit cards, is available without limit. Of course, this is very high.
Increase credit card limit subsequently
When the credit card is issued, the credit card limit is set at a flat rate. If your credit rating improves, the bank can also increase the value. An increase in the limit is favored if you have been with a certain provider for a long time and have shown that you can reliably pay any credit card bills. Some banks increase your card limit without asking, but you usually have to go to the bank yourself.
Special case of vacation
You may need more financial leeway, especially on vacation. If you do not want to permanently increase your credit line, you can agree with your bank on a one-time increase or have your limit lowered again later.
Also, keep in mind that Hotel or rental car bookings a certain amount may be blocked in advance, which reduces your card limit for further spending. If your credit line is insufficient, you will have to deposit funds into your card account.
Change the card limit
The amount of the credit card limit is usually on theCredit card bill or can be seen in online banking. Most banks offer the option of changing the card limit with little effort. A phone call is usually sufficient. However, you usually have to provide evidence that you have an appropriate credit rating.
Avoid too low a credit limit
Of course, you can also opt for a lower credit card limit than the one offered by the bank. But you shouldn't go too deep either, otherwise there is a risk that the card limit will be reached and payments will be rejected.
No more limit at all?
If you don't really feel like having a credit card limit, then a prepaid credit card is the one alternative. In principle, you can only pay with it from credit that you have previously loaded onto the card. Such cards are especially worthwhile if you already have debts and do not want to be tempted into further ones.
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