High credit limit credit cards

How does the credit limit on a credit card work?

The credit limit is the maximum amount you can spend using your credit card in each statement cycle. For example, if your credit limit is £20,000, you’ll be able to make purchases up to a total of £20,000 each month, without having to repay your credit amount. If you go over your credit limit, the transaction may be declined, or may go through, in which case you’ll likely be charged a fee for exceeding your credit limit.

Many credit cards are offered with a wide range of credit limits, but this is almost always tailored to the applicant. In other words, your credit limit is based on the card issuer’s assessment of your financial and personal circumstances. You’ll only find out what your limit is when you apply and are offered a card by the provider.

However, most card issuers offer an “eligibility checker” facility, which can tell you your chances of getting approved and in some cases, the rate and limit you’d likely be offered. Since these tools use a “soft search” they generally won’t have any effect on your credit score (although it’s worth making sure of this). If you are curious at how your credit score is shaping up, Finder has a free tool that tracks your credit score and report monthly.

Many issuers state the minimum and maximum credit limits available with a particular credit card, but commonly the maximum is simply “subject to status”. If you have a high salary and don’t already have a large amount of debt, you may find one or two platinum cards or high-end charge cards with no maximum credit limit that will simply approve a purchase because the issuer believes you’ll pay it back.

When you apply for a credit card, you’ll be assigned or offered a credit limit based on a range of factors in your application, including your credit history and income. Premium credit cards such as gold, platinum and black cards tend to feature higher credit limits than other cards. They also often come with more-premium extras such as rewards, complimentary insurance, airport lounge access and concierge services.

These cards are designed to suit people who spend more and earn more, so they also usually have higher minimum income and credit history requirements.

What is a high credit limit credit card?

A high credit limit credit card would be any card that offers a credit limit of thousands (or even tens of thousands) of pounds. A wide range of banks and credit card providers in the UK offer high credit limit credit cards, and they’re usually aimed at wealthier customers with excellent credit scores and a high annual income.

A card with a high limit can be useful if you have large purchases in mind or if you want to consolidate a lot of debts onto a card with a balance transfer offer. Flexibility to pay for more purchases also makes high credit limit credit cards useful if you want to earn more reward points.

While these cards increase your borrowing power, it’s important to remember you have to repay everything you’ve charged (plus interest). If you struggle to repay your balance in full each month and have a tendency to overspend, a credit card with a high credit limit might not be good for you.

Types of high credit limit credit cards

There are plenty of high credit limit credit cards available from a wide range of different banks and credit card providers. Depending on the high credit limit credit card you choose, you could also enjoy introductory offers such as 0% interest on purchases and/or balance transfers, reward points or no annual fee in the first year.

Gold and platinum credit cards

These premium credit cards are designed for big spenders and high income earners and usually offer higher credit limits as a result. In addition to more spending power, a gold or platinum credit card may offer you more points per £1 spent than regular credit cards. You’ll also usually get a range of complimentary extras such as insurance, concierge services, airport lounge access or even travel credit.

Compare platinum credit cards

Black credit cards

Black cards and other prestigious credit cards are notoriously hard to get. Usually they’re only offered to millionaires and are generally not advertised. Customers of these types of card tend to be existing platinum cardholders who get approached by the bank or provider to upgrade their credit card to the more exclusive ones.

What is the most prestigious credit card?

Charge cards

Charge cards don’t technically offer a credit limit. Instead, the amount you’re able to spend is unlimited on the proviso that you repay your entire outstanding balance in full every month. If you have large and regular purchases in mind and always repay your balance in full, a charge card could give you greater financial flexibility than a credit card with a set credit limit.

High limit balance transfer credit cards

A balance transfer credit card can help you pay off existing debt faster by giving you a promotional 0% interest rate when you transfer the debt to the new card. You can usually transfer up to 90% or 95% of the approved credit limit, so you’ll need to make sure the approved credit limit is high enough to support your debt.

Benefits of high credit limit credit cards

As well as giving you wider financial freedom with larger credit limits, you could also be entitled to a range of perks and rewards. Among the popular benefits that can be offered by high credit limit credit cards are:

• Travel reward points. These can be converted into flights, hotel stays, car rental and upgrades.
• Access to airport lounges internationally.
• Cashback. Be rewarded for your spending with cash on your account.
• Travel insurance.
• Concierge services.
• Payment protection and extended warranties.
• Access to exclusive travel and entertainment experiences.

How to compare high credit limit credit cards

Weigh up the following factors to help you find a high credit limit credit card that fits your needs:

Your spending habits

Before you request a credit limit increase or apply for a credit card with a high credit limit, consider the credit limit you’d need to support your regular spending without tempting you to overspend. If you regularly repay your balance in full, a credit card with a high limit could help you manage your expenses and give you extra spending power in the case of an emergency. However, if you don’t always repay your balance in full and regularly exceed your budget, a high credit limit could be an unnecessary temptation that could lead to debt.

Eligibility

Keep in mind that banks will take a close look at your spending history before they approve you for a credit card, or even for a credit limit increase on your existing card. If the only reason you keep going over your current credit limit is because you aren’t paying down your balance far enough each month, your bank may decline your application for a larger limit. It can clearly see you’re carrying a debt over from month to month and still trying to spend more money, so this will make it doubtful as to whether you’d be able to handle a larger credit amount.

The same is true if your account shows multiple missed payments or late payments, as the bank can already see you’re struggling to afford to repay the amounts you’ve already spent. Your credit limit increase will also be based on your annual income, so it’s important to consider this before applying.

Interest rates

Most high credit limit credit cards don’t come with a low interest rate. This is because the banks are lending a lot of money on a high limit card and to recoup the costs of lending such large amounts, those cards come with a relatively high interest rate on purchases. You can sort the table on this page by purchase interest rate to find the lowest rate option, alternatively, if those are still not appealing, you can compare credit cards with low interest rates.

Gold vs platinum: Which is best?

Pros and cons of credit cards with a high limit

High credit limit credit cards can give you more freedom with how and when you use your card but they also come with a greater risk of debt. Remember to consider your personal circumstances and compare a range of options so you can choose a credit card that will work for you.

Frequently asked questions

• How do I increase my credit limit?

  If you want to increase your credit limit, make sure you’re a good customer to your current credit provider, such as paying your bills off in full and regularly, without any late or missed payments. Get in contact with your provider and see if it will consider raising your limit. It will look at different factors, such as your bill payment and spending habits, your income and your credit score, when considering whether or not to increase your limit. It’s a good idea to be with the provider for a while before requesting an increase.

• Can a high credit limit credit card affect your credit history?

  The actual credit limit you have on your credit card account can’t technically affect your credit history. Your credit report may show the enquiry for a credit card with a high limit. However, if you pay your bills on time and keep your balances low, you won’t show any negative entries on your credit report, such as defaults. However, when you do have a high credit limit this is enough to affect your serviceability. This is your borrowing capacity, or the amount you’re able to borrow when applying for other types of credit.

• Is there such thing as a no limit credit card?

  By comparison, a charge card has no limit in place simply because you’re not being offered a line of credit. There’s also no interest rate advertised, because you don’t have to pay interest. This is simply because you’re required to repay your entire balance in full each month in order to keep your account. Your purchases are approved on an individual basis that’s based on your repayment history, your purchase history and your financial position, including your assets.

• What is the highest credit card limit you can get?

  Technically, there is no upper limit on the amount of credit you can get on a credit card. However, your provider will determine your limit based on your financial history and circumstances, and the highest credit limits (or even cards with no limits) will only be offered to those with higher incomes and excellent credit scores.

• What happens if I spend beyond my credit limit?

  When this happens, you may not be able to use your card to pay for any further purchases until you pay the balance down. Unfortunately, if your interest charges are due and you’re very close to your limit, the interest amount may be enough to tip you over your credit limit. The easiest way to avoid exceeding your credit limit is to ensure you always make regular repayments off your account. This will help keep your balance under control and avoid tipping you over your credit limit.

• Are there high limit credit cards that come with 0% interest periods?

  Although rare, if you look hard enough, there are a few nuggets of gold that offer you both a high credit limit and favourable interest free periods.

• Can I get a credit card with a limit over £20,000?

  Typically, the average credit card limit is around £4,000, however, if you’re a high net worth individual with an excellent credit score, you could be able to access credit limits above £20,000, depending on your credit card and provider.