Do you need to change your credit card limit?

 

At Christmas time you might want to increase your credit card limit, or perhaps reduce it prevent overspending. Credit card balance limits start at $500. There are many credit cards in the Infochoice credit card database that offer credit card limits as low as $500. The highest credit card limits around $6,000 on some higher level credit cards are common. Some credit card limits can be $10,000 or more. A few credit cards will offer people with good credit histories no defined maximum limits at all.

 

 

 

ASIC Moneysmart executive Miles Larbey told News Ltd that consumers need to think carefully before increasing their card limit.

 

 

 

“It can impact your ability to borrow money down the track.”

 

 

 

If you have a $10,000 limit on your credit card and you apply for a loan, perhaps a home loan, the total balance limit of $10,000 will be used to assess your liabilities, even if you owe $0 on your credit card. Of course, credit cards are not free money so your card limit needs to be taken seriously.

 

 

 

You need to ask to change your limit.

 

 

Banks and credit unions are not allowed to increase your credit card balance limit without you knowing and they are not allowed to offer you an increase without you asking. Banks and credit unions will not decrease your limit unless you ask, so you need to be in control, and actively ask for a new limit.

 

 

 

Choose a good credit card for your needs

 

 

For people who know what they are looking for in a credit card, Infochoice offers an advanced search function. Look up the Infochoice credit card database here, then click on the ‘Advanced Seach” tab near the top left hand side of the page.

 

 

 

Now you will be able choose the features that you value. You will be able to compare the credit, debit and charge cards that best suit your needs.

 

 

 

Alternatively, if you have a big credit card balance you may like to search for balance transfer credit cards. You can search here for credit cards that will accept a high balance transfer. You can research and compare credit, debit and charge cards from all the major card issuers in Australia here.

 

 

 

Source: infochoice.com.au