The basics of high-limit credit cards

When you open a new credit card, the issuer will likely assign you a credit limit, and some limits are higher than others. High-limit credit cards — as you could probably guess — have a higher credit limit than standard credit cards. In general, credit limits can range from a few hundred dollars to tens of thousands of dollars, depending on the type of credit card and your financial status.

What's a credit card limit and how does it work?

A credit limit, also known as a credit access line or credit line, is the maximum amount that you can charge to your credit card. As you use the card to make purchases, the amount of each purchase gets subtracted from your credit limit. The number you're left with is called your available credit.

What determines your credit limit?

Credit limits are set by lenders based on a variety of factors, including your credit score. Your credit score, however, isn't the only factor credit card companies review, and a high score alone doesn't necessarily guarantee a high credit limit. To determine a credit limit, lenders may also look at:

• Payment history: Are your bills, including monthly credit card bills, paid on time? Have you ever filed for bankruptcy or had debt sent to collections?
• Current accounts: How many accounts and what types of loans do you have open?
• Account history: How long have your accounts been open? Have you applied for new credit recently?
• Debt: How much do you owe? What does your credit utilization ratio look like? (This is how much credit you are using versus how much you have available.)
• Income: What is your source of income and how much do you make?
• Housing costs: How much is your mortgage or rent payment?

The type of credit card you apply for can also determine your credit limit. Some credit cards might have preset limits, whereas others might have a credit-limit range and use your financial profile to determine where you land. Of course, there are no guarantees that you'll qualify for a card, whether standard or high-limit

How to apply for a high-limit credit card

If you're wondering how to get a high-limit credit card, there are things you can do that may help to boost your approval odds. To get approved for high-limit credit cards, you'll most likely need to have good or excellent credit and a steady income to support a higher credit limit.

Picking the right card is important, too. You may be able to find the minimum starting credit limits listed in some cards' terms and conditions.

If you're looking to increase your current credit limit on an existing credit card, you have the option to ask for a credit limit increase. Many credit card issuers allow cardmembers to request an increase through their website or user portal. This can also be done by calling the customer service number found on the back of your credit card and asking if you're eligible. Some credit card issuers may automatically increase your credit limit.

In summary

If you're looking into a high-limit credit card, there are plenty of options to choose from. If you prefer to keep your current credit card and see if you're eligible for a higher limit, reaching out to your current card issuer may also be an option to take into account.