Post # 1
My question is, has anyone had experience increasing their credit limit on an existing card? Or even “converting” one card to another type?
I currently have a “student” credit card from Chase. I have a credit limit of $1,000. My current balance owed is around $200 (which I’m paying off next month). I’m in a pickle at work because my company has agreed to reimburse my CPA review course fees. So, I have to pay up-front and submit this expense for reimbursement. However, I don’t have $1,000+ just lying around (well I do, but it’s not being saved for this type of expense…). I’ll have to charge this expense on a credit card. Obviously my current balance doesn’t allow for this. I would, however, like to keep this account “open,” since credit is partly based on length of history.
Post # 3
@doxielove: you can call them an ask for a credit limit increase. They will either accept or deny your request.
ETA: why not just take the money out of savings and then put it right back in when it’s reimbursed?
Post # 4
I called Capital One and they refused, even though my credit score was over 800 and I had zero debt and doubled my income in the past couple of years. So instead, I applied for a new card, and the limit on it was 5 times what my capital one card was, and a lower interest rate. I kept the Capital One card open for credit history purposes, but never use it anymore. Their loss!
Post # 5
Why not just take the money out from savings and pay it since you know you’ll be reimbursed?
Capital One was always the worst about credit line increases. I had a card with a $500 limit on it for about 8 years before they FINALLY raised it to $4000 out of the blue. I had other cards with like $10K limits and my little Capital One first credit card I ever got was always sitting at $500…made me laugh. I’ve requested an increase from Chase before and they gave it to me, but I’m also a Chase banking customer so maybe that helped?
Bigger question – what course are you using?? I went with Becker and the damn thing was $3700!
ETA: Ok…so I basically just repeated what the two girls above me said. :p
Post # 6
Definitely call and ask, and if they say no, just open another card. What happened to crayfish also happened to my Fiance, and he just opened a new card with a limit 10x what the other company refused to increase. You can always keep the original card open to help build your credit history. Having two open accounts won’t hurt your score, and in fact, might help it if you keep a zero balance on one of the cards.
Post # 7
Requesting a credit limit increase is pretty straightforward. Just call the company and ask for one. You will probably have to answer some questions about your income and housing expenses, but they should be able to tell you immediately whether an increase was approved or not. They might also ask what you want your credit limit to be. Don’t worry too much about that question. Normally if you ask for too much, they will just give you a smaller increase than you requested.
Post # 8
I think credit cards are EVIL INCARNATE and if you can live with out it, do so. I’ve seen so many friends and family fall into CC debt. If you have savings, and you’ll be reimbursed fairly quick, do that. The interest alone on a $1000 balance makes it a worst case scenario option. Why pay extra interest when you don’t need to?
Post # 9
I believe (and someone please correct me if I’m wrong) it reflects better on your credit to open up a new, higher limit card than to request a higher limit on an existing card. Of course, if you’re going to be a CPA, you might know that better than me…I think my source of knowledge is an article I read in Glamour or some other, equally realiable, magazine.
Post # 10
@StL.Ashley: I know that part of it is history, so the longer an account has been open, the better.
Post # 11
@StL.Ashley: Sort of true actually. Your credit score is based on a few things and debt to credit ratio is one of them. If you have a limit of 1500 on one car and your use 1400 of it – it actually hurts your credit to some extent. However, opening a new card will most likely give you a higher limit so that your debt to credit ratio is not as great. I dont think having two cards is bad but definitely DO NOT close the old account which helps your credit based on history.
Post # 12
I would prefer not to use my savings for this, thanks for the suggestions though!
It sounds like keeping this current card at $0 and opening up a new card (maybe a 0% for x amount of months??) would be the best option. I didn’t even think of that. Durrrr. lol.
@misspeanut: I’m going to go with Yaeger. I think it will mesh well with my study style 🙂 Plus I wasn’t sure if my company would go for the cost of Becker – lol!
Edit – I’m also going to try to suggest that someone with a company credit card just charge the course rather than go through the rigamarow of me paying up front…that would be ideal!!!!
Post # 13
@MrsVandykins: she won’t have to pay interest on the $1000 if her company reimburses her before the grace period on her next statement. Depending on where she is in the billing cycle, that could be anywhere from 25-40 days.
It’s true that a lot of people are irresponsible with credit cards, but it’s really not the cards’ fault. And it IS important to build up a good credit history if you ever intend to buy a house or take out some other large loan.
Post # 14
The other thing you can try is letting the company know that you will go elsewhere if they don’t raise their limit. So you would say something like “I’ve talked to _____ company and I would qualify for a card with ____ limit and _____ terms. I’ve been happy with your customer service, and have made all my payments on time for this card so I would prefer to stay with you. What could you offer me to match _____ offer?” They may not raise it as much as you would like, but they probably will offer you something.
Post # 15
Gah Capital One is awful about raising limits. I have a couple of cards that I’ve had for ~5 years that have had several limit raises, and my stupid CO card that I’ve had for almost TEN YEARS is still sitting at a $300 limit.
Post # 16
I had the same thing with American Express. My limit was super low and I had a grown up job where I took 3-4 times my limit every month. Wells Fargo gave me a much higher limit and no interest for 6 months!