Just got a call from my credit card provider that they are increasing my credit limit from 5K to 25K. They also said that I can upgrade to either a gold or platinum card. Just wanted to get some feedback on whether I should accept the credit limit increase or keep it at something closer to 10-15K. Also curious what your experiences are with either the gold or platinum and which one I should pick. Thanks.
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Which company?
mbna
Gold. Lower APR
I refuse to pay annually for a credit card so unless they want to give me a free year I'd pass (at the end of which you threaten to leave and they'll probably give you another...ive had this ruse with amex for years).
If you care about the APR you might reconsider your spending habits.
I'd get the highest credit limit available, assuming you plan on paying it off every month.
The APR of the platinum is 8% higher than the gold, but neither of them has any annual fees. Does that change anything? I almost always pay the entire balance at the end of each month.
The interest rate is totally a moot point if you pay it off every month.
If you're in a position to pay off the balance in full every month then just look at whichever one has better benefits- granted that there are no hidden fees.
.
Should compare the benefits as other mentioned. If your credit limit is too high then apparently it looks bad. Too much credit at disposal creating other risks (running away with everything one day). I think the ideal ratio is 30%? Kind of high if you ask me.
Hmm, ok this is my only credit card and my base salary is 100K. I have some student loans totalling 40K that I'm paying down pretty quick. So in this case, would my credit be adversely affected? If so I won't go anywhere over a 10k limit. I don't ever spend more than 3K on my card per month so it doesn't really matter to me whether I have 10K or 25K as a limit.
I've done some research on credit scores a few times, and unlike a few above, I do not believe you'd ever be penalized for having a high credit limit. It will only help your score if you are able to manage it well, which you obviously are doing if you pay it in full each month. They would only see it as a risk if you were actually using all that credit (i.e. carrying a high balance) outside your means.
If you pay it off in full, and there are no fees, go platinum. As long as you trust yourself with the high limit, take the $25K.
Thanks Tar Heel Blue. That's helpful.
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