Do Credit Cards and Charge Cards Have A Maximum Credit Limit? - Credit Card Insider

[@alefortune]

Fantastic information about this subject. Im glad I stumbled upon your site tonight and I have subscribed !

[@Arabsummer]

On the credit cards that I rarely use, I like to keep something under a dollar, a few cents, OVER the amount that was due say for several months or a year. I might actually use the card thrice annually. This way they (a) they have to report and (b) I'm always in the Black, never the red. John, do you approve?

[@DADDYYANKEE2]

I'm glad that I found this channel! All of your videos are informative, and they've really helped me out, so thanks and keep up the great work :)

[@Creditcardinsider]

+JesusJanica “LegendReborn3” Thanks so much!

[@julioc4978]

Does it improve your credit score by getting a charge card if you already have a good credit score? I believe the nee system is different where the highest balance gets reported every time? Thank you

[@Creditcardinsider]

Yes, charge cards can be treated somewhat differently by credit scoring models. A charge card can help or hurt your credit scores depending on how it is used. - John G

[@IvyANguyen]

Are there any advantages to having a charge card a la AMEX Green/Gold/Platinum? What if the annual fee is exactly the same (I think some of the AMEX products are this way)? Does someone need really good credit like north of 720 FICO to get a charge card?

[@Creditcardinsider]

+Ivy A Nguyen The advantages of those cards are usually in the rewards and other benefits provided. Is there a specific example of two cards you're referring to, one charge and one revolving, that have the same annual fee, rewards, and benefits? Yes, charge cards are generally designed for people with excellent credit. - John G

[@frenchguy4888]

It can't be that hard to get, my credit score is only like 616 and they approved me for the Premier Rewards Gold Card. Granted I also have the Blue Cash Everyday Card with them with an excellent payment history, etc.

[@IvyANguyen]

It is likely the usage of the Blue Cash Everyday card that put you in a good position for getting other cards with AMEX as they would then have their own profile on you in addition to whatever they can get from Exp/Equ/Tu. I heard of companies using their own algorithms for people with products with them at times. Not sure how often it happens.

[@nautica445]

Credit Card Insider I currently have three active accounts on my credit report. Two are credit cards and one is a charge account. My credit score is 753. I plan on buying house in coming months. Referring to the credit cards one is 10 months old and the other is five months old. Oldest card has a limit of $4800 and the other $5000. I pay in full before closing date and after the closing date I charge something less than 1% of my credit limit on each card. This way I won't pay interest and the card issuers will report credit utilization of less than 1% or less(never zero). Never missed a payment. Doing this my score has been increasing 5 points every month. The charge account I have is 8.5 years old. I purchased earrings by putting down payment and financing the remaining balance. I was receiving bills in mail which I paid in person Everytime and on time till I paid off entire balance. I also received a credit card at time of purchase which I never activated, signed or used. The card had limit of $3650 I recently shredded the card after discovering it in stack of old papers. On my credit report it shows all the in person payments were treated as if I was using the card. Yet this charge account is still open and reporting. 1) should I close "charge account"? 2) will closing the "charge account" affect my utilization ratio? 3) will closing "charge account" hurt my score? 4) how can I increase my

[@lidsman2221]

I have a question. I went on Credit Karma and was messing around with the this thing they have on there were you can pick different things and see what would happen to your score if you were to like miss a payment or add a card. When I hit add a card my score went up. My question is I just got 2 new cards about 6 months ago and 9 months ago or so. How many cards should one person have and with getting 2 new cards so close together am I likely to get the card and is it worth it to add 5 pts to my score? Thanks!

[@Creditcardinsider]

+lidsman2221 The biggest piece of advice I like to give is to know the factors that affect your credit score and focus on the fundamentals. I'll answer your last question first - is it worth it to add 5 points to your score? A higher score can help you, of course, but focus on the fundamental things that affect your score rather than those 5 points. You could spend years trying to get a "perfect" credit score, but there isn't much benefit once you're above a certain level (see this video for more: kzbin.info/www/bejne/jJ6mlXaXpKl7kNU) This page goes in detail about the factors that impact credit scoring models, so I recommend you review this first: www.creditcardinsider.com/learn/whats-in-your-credit-score/ One of the biggest ways you can impact your score is a very low utilization (like less than 10%) since this is re-calculated every month and can quickly swing your score in one direction or the other. If you have high utilization now and you bring that down, those other factors start to matter a LOT less. In general, scoring models like to see MORE accounts rather than fewer accounts (that's why more cards open can improve your score) and a mix of different types of credit (like a car loan or mortgage in addition to credit cards). The downside of opening more cards is a hard inquiries on your credit, which hang around for a little while and can bring your scores down slightly, but unless you're applying for tons of cards at once it's probably not a concern compared to other factors (like making payments on time and keeping utilization low). You can learn more about inquiries here www.creditcardinsider.com/learn/credit-inquiries/ and by watching this video kzbin.info/www/bejne/aV7Yo4OkjaqVmtk So, bottom line, there's no exact number of cards one person should have (see this video for more on that: kzbin.info/www/bejne/n4KsnICjhZWMn8U) or a specific amount of time you should wait between applying for cards. And, if you are focusing on the fundamentals of a good credit score, like low utilization and making payments, the other factors that swing your score by a few points here and there don't really matter a ton... meaning I wouldn't plan your life around how many hard inquiries you have on your report. You can may also be able to check prequalified offers for cards you can get approved for without getting a hard inquiry first: www.creditcardinsider.com/insider/get-better-credit-card-deals-with-pre-qualified-offers/ I hope this helps! - John G

[@chachee15]

I called my cards and asked to have y limit raised. I got my best buy card from 400 to 3000. I got a visa card from 3000 to 5000. these were hard checks so hopefully it was worth it. I have about 5000 of debt and that includes my motorcycle.

[@bplusr]

If you have a card with an annual fee do you still have to use it to keep it active?

[@Aekif]

+Brandon Rebuck It's suggested you use it (depending on the lender) about once every 6 months or 12 months. I usually buy a $5 amazon gift card every few months with my less frequently used credit cards.

[@Creditcardinsider]

+Brandon Rebuck There isn't really a defined amount you need to use a credit card to keep it active, but at some point the issuer may choose to close it if you don't. Check out this video for more info about that: kzbin.info/www/bejne/eaLCl6Seidhnpqs - John G

[@marksantucci4230]

if you have an open credit card like the green, gold or the platinum since they have annual fees you don't have to use it , it will stay open. same thing with a revolving credit card if the card has an annual fee you don't have to use it will stay open.

[@marksantucci4230]

I don't know if this question belongs on this topic or 1 of your other video's. If I have let's say a 5,000 dollar limit , I spend 2,000 and always pay that bill in full and on time. I keep using 50% of my credit do I get a better credit score or does my credit score go down because shouldn't everybody be treated the same? would it go down using 50 to 60%? if somebody has a 5,000 credit limit they spend 400.00 and they pay let's say 200.00 and the interest rate is 15.4% what happens to that score they have better score because they have money that they still owe or there score goes down because they didn't pay the entire balance in full?

[@Arabsummer]

[@marksantucci4230]

I have a question like what John was saying in the video all credit cards and charge accounts have credit limits, everybody has different limits. We'll take John's example as it is a great choice The Green card which is an open card, as he was saying you can't purchase houses , airplanes , depending upon the person you can't buy items in Bergdorf Goodman's or Tiffney's depending upon the person Yes Donald Trump, Derek Jeter , Oprah , Janet Jackson can but the average person can't. as John Metioned on our credit report's it doesn't list our minimum balance or credit limit. so let's say for example somebody who works for a company and travels on company business, the company pays for all his travel expenses what do you think his or her credit limit would be?

[@Creditcardinsider]

+Mark Santucci Like with a personal card, the credit card company would calculate the risk associated with the company card used for the travel expenses and determine a credit limit that they think is reasonable for that account while minimizing their downside risk if the company doesn't pay. - John G

[@314DOOGIE]

+Credit Card Insider is it pointless to have a charge card if you have multiples of credit cards with huge limits with a credit score of 760.. is having a charge card worth having I had the American Express Platinum but I downgraded to the gold

[@RyanValizan]

I noticed you told people a trick was to pay off the card before the statement was sent out, as that's usually the balance sent to the report agencies; but, there is a caveat to that in which you don't want to pay off the entire balance, instead one should pay only a portion of the balance. I usually try to make a payment before my statement closes which will bring my balances down to about 1-10% utilization and whatever remaining statement balance was left over from the month prior. This allows me to hold the funds longer in other investment accounts and continue making my money work for me until I need to pay down the balances of my revolving accounts. If people always pay their balance off before the statement closes then they will adversely affect their score by showing no utilization on their history.

[@Creditcardinsider]

+Ryan Valizan Good point Ryan. We actually did another video about this exact topic: kzbin.info/www/bejne/d6HMZqymn7Jkntk You're right that 1% utilization can be better, although it might not always be practical to do several payments every month to optimize utilization monthly.

[@RyanValizan]

This is why I simply just make my payment one time before the statement close date to clear up any balances i need to and pay off remaining balances. By paying it before the close date it wouldn't be any different than paying in full when the statement is made available. I put the vast majority of my utilities on a cash back account so the balances can get pretty high as the month rolls along. It's saving me about $300/y in cash back alone, which is pretty nice for bills I'd be paying anyways ☺️

[@yhcslccshyyfdcfcl2820]

I buy my son an Lego set