How to Get a Secured Card with a High Limit

by John Stevenson on August 1, 2014

The easiest way to obtain a secured credit cards to rebuild credit with a high limit is to deposit a large sum of money to serve as a guarantee for prompt and timely payment. The limit offered also depends on the bank of choice, with some institutions offering credit limits that can be as high as $10,000.

Factors That Determine the Credit Limit

Banks take a number of factors into account, but the most important ones include personal income and credit rating. Other factors that financial institutions take into consideration include the applicant’s debt-to-income ratio and repayment history. Borrowers with maxed out credit cards, excessive debt, and late and missed payments are unlikely to get a credit card with a high limit. The repayment history of applicants is an important factor in that a solid history indicates timely payments and responsible use. Household income is another factor that determines the credit limit and whether applicants meet the criteria. Salaried employees are more likely to get approved compared to stay-at-home spouses and unemployed applicants. As a rule, customers with fair and poor credit and low income are offered cards with a lower limit, but the good news is that the limit can change over time and with regular, timely payments. In fact, many issuers re-evaluate the credit limit on a regular basis and may offer to increase it within a period of 6 or 12 months. There are other factors to be taken into account, and they depend on the type of credit card and the issuer. Department stores and merchant outlets, for example, look into spending patterns to make a decision. Many finance companies and banks look at the credit report to make sure that the limit offered is adequate and fits the borrower’s repayment capacity.

Ways to Secure a High Limit    

One of the ways to secure a high limit is to improve your credit score by making regular payments. Other ways to rebuild credit include paying down existing debts, paying gas, electricity, and other non-credit bills, and taking out a small consumer loan. Obviously, you will get a higher limit if you are considered creditworthy. Comparison shopping is also a way to find a credit card with attractive terms, and some issuers advertise high limits, low introductory interest rates, no exchange rate and annual fees, and other extras. These details are important, and some issuers even offer the option to earn interest on the amount deposited – this is a good way to offset some of the costs. And while many issuers offer cards with reasonable limits and other benefits, applicants who have declared bankruptcy and borrowers with outstanding lines of credit are often turned down by providers because they are considered risky.  Some issuers accept applications automatically but the best way to find out if you qualify is to visit a local branch. In general, banks look at your financial habits, types of credit used, and other factors.

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