Oh, the credit score. That ever-present spectre in the background of financial life haunts us every time we think about a new car or even that 0% interest rate card from some big box store. But what if your credit isn’t super? Should you look into credit cards with high limits for fair credit scores?
Good credit is ideal, of course, but life is unpredictable. Having your credit score reduced by any amount feels like a reason to hit the panic button. When your overall rating falls below the ‘good’ credit rankings to ‘average’ or ‘fair,’ it can be even more frightening. Remember, at the end of the day, a credit score is nothing but a number to help a credit provider understand your creditworthiness. It is not the be-all-end-all of your financial life.
Credit cards with high limits for fair credit can be useful for a range of reasons. Increasing limits can help you lower your credit usage to improve your credit score. The expectation may be that without a high credit score already, you do not have a chance of approval for a card with high limits, but that is not always the case. Even if it presents a challenge, there are ways around it.
Finding credit cards with high limits for fair credit
The best news in getting started with this search is that the credit card companies are not interested in staying hidden. Heck, there’s probably a credit card offer in your mailbox right now. If they’re willing to lend to you, they want you to be able to find them. Depending on the limit you’re looking for, they may want to know your intended use for the higher limit.
The best place to start looking for a company that will give you a high credit limit is the credit cards you already have. By contacting your current credit card companies and requesting a credit limit increase, you improve your odds of setting your own bar, especially if you have a history of paying your bills on time.
Companies might want to control your maximum credit limit when applying for a new card but, even if they do, that doesn’t prevent you from applying for an increase after you’ve after approval.
How to compare credit cards with high limits for fair credit
Being approved for a new card with a high limit comes with its own set of risks. When you have a lower credit rating, the credit card company may set terms in its favor to gain more interest in the case that you carry a balance on your card. Therefore, the lower your credit rating is, the more important it becomes to use your credit wisely. Mistakes will hurt you more than they would if you had a higher credit score.
Knowing this, companies’ terms should always be the first place you go to compare cards. If you have a choice, always go with the company offering you a lower interest rate. Otherwise, you can begin to think about what rewards and benefits you can get from individual cards. These rewards can be useful if you plan on utilizing a high limit credit card.
With this said, even with a lower interest rate, carrying a credit card balance is risky. If at all possible, avoid it. No matter the interest rate you get on a card, credit cards have the highest interest rate of any debt vehicle, and you will increase your debt quickly if you don’t pay your balance on time.
Do you look for credit cards with high limits for fair credit, or are you more concerned with increasing your credit score before finding the right credit card?