Experience the greatest flexibility on the market and exclusive benefits with high limit credit cards. Compare your options to find a card that suits your spending.
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Comparison of High Credit Limit Credit Cards
Banking with a higher credit limit
When you apply for a credit card, the credit limit you're approved for will depend on a range of factors. Many credit cards have a predetermined maximum credit limit, but the bank will also assess your credit limit based on your income and credit history.
In many cases, prestige cards such as Gold, Platinum and Black cards tend to feature higher than usual credit limits. With most banks, a Platinum card may have a maximum credit limit of up to $100,000, while a Gold card might have a maximum limit of up to $50,000.
Business banking accounts may often have limits that exceed these amounts. However, these may need to be arranged by negotiating with your individual business banker.
What is a high limit credit card?
A credit card has a predetermined credit limit put in place on the account. You’re able to spend money up to this limit. A high limit is considered to be over $20,000 which means that you can spend up to that amount every statement period.
How do credit cards with a high limit work?
A credit limit refers to how much you can spend each statement period. Therefore, a card with a high limit will give you more flexibility to spend and could come in handy if you have large purchases in mind or are balance transferring a large debt from one or several existing accounts. While these cards increase your borrowing power, it's important to remember that 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.
What are the types of high limit credit cards?
There are plenty of high credit limit credit cards available from a wide range of different banks, lenders and credit card providers.
Gold, Platinum and Black level cards
For the most part, you’ll find that most prestige cards, such as Gold or Platinum cards tend to offer higher credit limits than their "Classic" counterparts. For example, banks such as Citi can offer credit limits as high as $60,000 for Gold or business credit cards, while the Citi Clear Platinum credit card can have a limit as high as $100,000 for some customers.
Business or corporate cards
Business or corporate cards generally offer higher credit limits than personal cards, so as to provide enough borrowing power for a business. These designed are to cater to the fluctuating spending needs of business owners, including businesses that distribute additional cards to employees under the primary business account.
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.
Unconventional credit providers
Of course, some of the big banks also have their own "Private Banks", which are separate institutional banks that cater exclusively to the bank’s high net wealth clientele. These clients are given their own personal Private Banker, who will cater to their individual needs, including increasing credit limits to more accurately match each client’s spending habits and needs. Depending on your other banking needs, you may also find there are some banks out there willing to negotiate for larger limits, higher facilities and more flexible products. This is sometimes dependent on your income and current spending patterns.
High limit balance transfer credit card
A balance transfer credit card offer lets you transfer existing debts to a card with a lower or 0% interest rate, allowing you to repay your debt without the burden of high interest. However, you can usually transfer between 70% and 100% of the approved credit limit, so you'll need to make sure that the approved credit limit is high enough to support your debt. If you have a large balance, you can compare high credit limit balance transfer credit cards with credit limits between $15,000 and $100,000. If your credit limit is large enough to support your debt, the remaining balance will continue to collect interest on your old card.
Case Study: Mary requests a credit limit increase
Mary has found that she regularly ends up going over her available credit limit just paying for normal monthly expenses. One of the drawbacks of being limited by this is that penalty fees and charges apply when she goes over that amount. Aside from this, she could find that her transactions are refused when she tries to use her card to pay for other things once she's gone over her available limit.
When the banking reforms were introduced, Mary opted in to allow her bank to send her credit increases. As she has been paying off all her outstanding balances, she applies for a raise in her limit to a more suitable amount.
You can find out how to increase your credit limit with this guide.
How to compare high limit credit cards
Your spending habits
Before you request a credit limit increase or apply for a credit card with a high credit limit, consider your spending behaviours and the credit limit you'd need to support your expenses without tempting you to overspend. If you regularly repay your balance in full and spend in accordance with a budget, 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 a credit limit increase. 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. They can clearly see that you’re carrying a debt over from month to month and still trying to spend more money, so this will give them doubt 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.
Increase your credit limit
If you want a higher credit limit, you might not need to apply for a new card. If you are happy with the features and fees that come with your credit card but simply want more spending freedom, you could request a credit limit increase with your existing bank. So long as your account is in good order, you regularly repay your balance on time and have an income to support the increase, you should have no trouble applying.
Interest rate
Most high limit credit cards do not 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 and cash advances. 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.
Pros and cons of credit cards with a high limit
Pros
- More spending power. Obviously, applying for a higher credit limit will give you greater access to cash and increase your ability to spend. If you're struggling to cover your expenses with your current credit limit, this could be an easy way to make sure your credit card works for you.
- Useful for business expenses. Business banking accounts may often have limits that exceed the standard credit limit of a personal card. If this is the case for your business, you can either apply for a business credit card or get in touch with a business banker to negotiate a higher limit.
Cons
- Dependent on income. Your credit limit increase or credit card application will be dependent on your credit history and income. If you don't meet the minimum income requirement, you might not be approved.
- Temptation to spend. A higher credit limit could tempt you to spend more than you can afford to repay each month. Remember that you'll have to repay everything you spend, often with additional interest costs.
Frequently asked questions
How do I increase my credit limit?
Since the credit reforms in July of 2012, banks can no longer send you unsolicited credit increase offers. That doesn’t mean you can’t increase your credit limit, you just have to request it from your bank or you can opt in to receiving requests.
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 listed 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 is also no interest rate advertised, because you don’t have to pay interest. This is simply because you are 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 is based on your repayment history, your purchase history, and your financial position, including your assets.
What happens if I spend beyond my credit limit?
There are times when you may have spent more than you intended and become dangerously close to your credit card’s available limit. When this happens, you may not be able to use your card to pay for any further purchases until you pay that balance down a bit. 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. As of June 2012, the banks are now required to contact you when your credit card is getting close to its limit. This should give you a reminder that you need to make a payment or perhaps stop spending for a while so you can get it back down again. The easiest way to avoid exceeding your credit limit is to ensure that you always make regular repayments off your account. This will help keep your balance under control and avoid tipping you over your credit limit.
