From buying big-ticket items to getting more rewards, compare credit cards that offer you the flexibility of a high credit limit.
A wide range of banks and credit card providers in Australia offer high credit limit credit cards. As well as offering maximum credit limits of between $20,000 and $100,000, these cards are usually gold, platinum or black accounts that come with more premium extras such as rewards, complimentary insurance and concierge services. Use this guide to compare credit cards with high credit limits and find a card that will support your financial needs.
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Comparison of High Credit Limit Credit Cards
How does the credit limit on a credit card work?
When you apply for a credit card, you'll be assigned or offered a credit limit based 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.
For example, a platinum card may have a maximum credit limit of up to $100,000, while the gold version of that card might have a maximum limit of up to $50,000. This is because these cards are designed to suit people who spend more and earn more, so they also usually have higher minimum income and credit histort requirements.
What is a high credit limit credit card?
A high credit limit credit card is designed to offer you more financial flexibility by giving you a greater amount of credit, which could range from $20,000 up to $100,000. This means you could spend up to that amount every statement period, assuming you didn't carry a balance.
What are high credit limit credit cards used for?
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 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. Depending on the high credit limit credit card you choose, you could also enjoy introductory offers such as 0% interest on purchases or balance transfers, thousands of bonus points or no annual fee in the first year.
Gold, Platinum and Black 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, platinum or black 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.
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 low or 0% interest rate when you transfer the debt to the new card. 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 switches to a higher credit limit credit card
Mary currently has a frequent flyer credit card that earns her 0.5 points per $1 spent. But she's recently found that she's going over her available credit limit just paying for normal monthly expenses. As well as leading to declined transactions, this also means she's not earning as many frequent flyer points as she could if she was able to pay for more of her everyday expenses.
While Mary could request a credit limit increase on her existing card, she decides to compare other frequent flyer cards to see if there is one that offers more competitive rewards. After weighing up her options, she applies for a premium frequent flyer credit card that offers high credit limits and 1 point per $1 spent. This allows her to pay for all her everyday purchases using the card and earn more points than before.
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.
How to compare high 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.
Keep in mind that banks will take a close look at your spending history before they approve you for a high credit limit 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. 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.
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.
Increasing 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.
Pros and cons of credit cards with a high limit
- More spending power. 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.
- Consolidate card debt. If you have debt on one or several credit cards, moving them onto a high credit limit credit card with a 0% balance transfer offer could make it easier to manage repayments and clear the debt faster.
- More potential rewards. If you want a credit card that earns points per $1 spent, a higher credit limit will let you pay for more of your everyday expenses on plastic so that you can make the most of the card's earn rate.
- 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.
- 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.
- Interest charges. High credit limit credit cards could lead to more interest charges than standard cards if you carry a balance from month-to-month.
- Annual fees. Premium credit cards that offer higher credit limits also tend to have higher annual fees. Make sure you weigh this cost against the benefits of the account to decide if it's worth it for you.
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 that you can choose a credit card that will work for you.
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.