A high limit credit card usually has a credit line limit that goes from $5,000 anywhere to $10,000 and beyond. The biggest benefit a high limit credit card provides to you is more available credit that in turn lowers your credit utilization rate. Your credit utilization rate has a huge impact in your overall credit score.
Also, cardholders with high monthly expenses or with the need to buy a high price item can enjoy the added benefit of these types of cards.
What are the benefits?
- Increasing limit on an existing card is a better option than getting another credit card since opening a new account shortens the length of your credit history and a longer history usually means that you have a better score.
- You make large purchases and reap the benefits of card rewards
- It can help you in an emergency
- It is easier to get additional credit or loans
- It lowers your credit utilization