Credit Card Limits

[raskolnikov]

I just saw a Citibank ad for a credit card with a $25,000 limit. What I want to know is why anyone would want a limit that high. The amount of interest you would be paying on a maxed out card would be astronomical. I have a gold credit card which has a $5,000 limit but I pay it off every month. Yet my bank keeps sending me offers to increase the limit? Why would I want to? Is there any benefit to having a card with a larger limit?

 

[Simon_Nesbit]

I have a citibank 25k CC. The interest is less than my home-loan.

Anyone who can get offered one and doesn't is foolish IMO.

2.9% lifetime interest on balance transfer. Fees are negligible (on 25k @ 2.9%!).

Buy a car with 25k on a CC, transfer to Citibank = 25k in very cheap loan. Use the 25k you would have spent on the car to invest....even at term deposit 5% interest it's making you money...

 

[Eagle87]

I just saw a Citibank ad for a credit card with a $25,000 limit. What I want to know is why anyone would want a limit that high. The amount of interest you would be paying on a maxed out card would be astronomical. I have a gold credit card which has a $5,000 limit but I pay it off every month. Yet my bank keeps sending me offers to increase the limit? Why would I want to? Is there any benefit to having a card with a larger limit?

Mate, when you travel on business for a month at a time a $5k limit isn't close to enough.

In addition the comments from Simon_Nisbit are accurate too, you can get some pretty good deals on some cards.

My citibank card has continued to increase its limit and now stands at $46k. I have certainly never gone anywhere near maxing it out but its there and if needed can be handy. Certainly doesnt hurt to have it available.

 

[Simon_Nesbit]

Also, a friend of mine (well client, kind of family friend) has a 125k CC. Clears it every month.

Bought his mistress a BMW for her 19th b'day (which is sick, by my reckoning he's 40+), entirely on the CC.

Then with the frequent flyer points earnt, he took her to Europe for a month.

Not many can get that kind of ridiculous limit though.

 

[Simon_Nesbit]

She's "European", not sure entirely where (I'd guess Spanish if I had to), but had never been 'home' before.

He doesn't seem to have an issue with the ladies ($$$ does that apparently), but has been married four times, and each ended in divorce. His current wife seems to be ok with the 'extra' in his life. I don't understand it, but then again, I'm don't have 100k to throw at a BMW either.

 

[Lunchtime]

Mate, when you travel on business for a month at a time a $5k limit isn't close to enough.

In addition the comments from Simon_Nisbit are accurate too, you can get some pretty good deals on some cards.

My citibank card has continued to increase its limit and now stands at $46k. I have certainly never gone anywhere near maxing it out but its there and if needed can be handy. Certainly doesnt hurt to have it available.

Would there be any need to max it out?

 

[Lyyynnnchy]

I use the AMEX platinum

Essentially an unlimited limit but it needs to be paid off at the end of each month. Annual fees at $1.5k are high but the benefits generally out way the fee, particularly if you travel a fair amount

 

[Lunchtime]

I use the AMEX platinum

Essentially an unlimited limit but it needs to be paid off at the end of each month. Annual fees at $1.5k are high but the benefits generally out way the fee, particularly if you travel a fair amount

That card would be dangerous in some peoples hands lol

I assume in order to be qualified to get the card you have....a high income is needed??