Line of credit advice?

[squiggs96]

Originally Posted by pylon

On a soft inquiry, they offer me a $50,000 unsecured LOC and ask me if I want to bump my Visa limit to $20,000. I said yes to the LOC, but no to the Visa bump lol. Nobody that doesn't own a big business, needs more than a 10k limit on a single card IMHO.

I don't get this. Why should you only have a $10k limit on a credit card? My limit is $27k, but I pay the balance off each month. Most of the time it doesn't get past $2,000 in monthly charges, but now that I'm building a house, it's hit $25,000 a few times. I have other cards as back ups, but it's so much easier to put everything on one card instead of spreading it out. I don't have a need for a $50k LOC, and the interest on those is higher than a HELOC.

[DownhillGoat]

Originally Posted by squiggs96

I don't get this. Why should you only have a $10k limit on a credit card?

Yeah I keep a higher limit on one of mine too. Had some cash for finishing the basement, put it on the card and paid it off. Cash back for huge purchases like that is awesome.

On the other hand, with a 10k limit, you could always pre-pay/overpay the card, and have an increased limit temporarily.

[pylon]

Originally Posted by squiggs96

I don't get this. Why should you only have a $10k limit on a credit card? My limit is $27k, but I pay the balance off each month. Most of the time it doesn't get past $2,000 in monthly charges, but now that I'm building a house, it's hit $25,000 a few times. I have other cards as back ups, but it's so much easier to put everything on one card instead of spreading it out. I don't have a need for a $50k LOC, and the interest on those is higher than a HELOC.

I dunno, just a discipline thing with me. I tend to get stupid in motorcycle dealerships sometimes. At one point in my life, I got over my head with debt. So I just try and keep my limits not too high.

However I do have 3 cards with 10k limits. Which kinda defeats the purpose. LOL.

[Deegee]

Originally Posted by kunkstyle

On the other hand, with a 10k limit, you could always pre-pay/overpay the card, and have an increased limit temporarily.

For many cards, the credit limit is also the spending limit in a billing period.