Experience the greatest flexibility on the market and exclusive benefits with high limit credit cards. If you have the income and earning power to match a high limit line of credit, compare your options and find a credit card to suit your spending.
There are plenty of high credit limit credit cards available from a wide range of different banks, lenders and credit card providers. For the most part, you’ll find that most prestige cards, such as Gold or Platinum cards tend to offer higher credit limits than their “Classic” counterparts.
High Credit Limit Credit Card
The Citi Qantas Signature Credit Card offers a high credit limit of up to $100,000. It also features a bonus 70,000 Qantas Points when you meet the spend criteria, a balance transfer offer and a discounted annual fee in the first year.
- $99 p.a. annual fee for the first year ($395 p.a. thereafter) annual fee
- 20.99% p.a. on purchases
- 0% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.74% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $75,000 p.a.
Comparison on High Credit Limit Credit Cards
Rates last updated September 28th, 2016.
- HSBC Platinum Qantas Credit Card
Bonus points offer has been changed from 40,000 to 60,000 and extended until 31 December 2016.
September 1st, 2016
- Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Balance transfer offer has been extended until 31 October 2016.
September 26th, 2016
- Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
Balance transfer offer has been extended until 31 October 2016.
September 26th, 2016
Banking with a higher credit limit
The highest credit limit available to you will be dependent on a range of factors. The type of credit card you have may be limited to a predetermined maximum limit. Your own income may be the limiting factor, as the bank needs to consider whether the amount you earn will be enough to cover the credit amount you’re applying for.
In many cases, the prestige cards such as Gold, Platinum and Black cards tend to feature higher than usual credit limits. With most banks, a Platinum card may have a maximum credit limit of up to $100,000, while a Gold card might have a maximum limit of up to $50,000.
Business banking accounts may often have limits that exceed these amounts. However, these may need to be arranged by negotiation with your individual business banker.
What is a high limit credit card?
A credit card has a predetermined credit limit put in place on the account. You’re able to spend money up to this limit. A high limit is considered to be over $20,000 which means that you can spend up to that amount every statement period.
How do credit cards with a high limit work?
A high limit credit card offers you an increased credit limit that also gives you the flexibility to transfer in debts from several cards at the same time – or if you have the income to support you spending up to your credit limit. High limit credit cards can be a useful tool as they add significant value to your credit line, which then increases your borrowing power.
What are the types of high limit credit cards?
There are plenty of high credit limit credit cards available from a wide range of different banks, lenders and credit card providers.
Gold, Platinum and Black level cards
For the most part, you’ll find that most prestige cards, such as Gold or Platinum cards tend to offer higher credit limits than their “Classic” counterparts.Banks such as Citibank can offer credit limits as high as $60,000 for Gold or business credit cards, while the Citibank Clear Platinum credit card can have a limit as high as $100,000 for some customers.
Business or corporate cards
You should also find that some business credit cards are available with higher than usual credit limits. These are set to more easily cater to the fluctuating spending needs of business owners, including catering for businesses where employees may have individual cards incorporated under the primary business account.
You may also find that a charge card may end up being more convenient for you, especially if you use your card to pay for almost everything. These are technically “no credit limit” cards, where the amount you’re able to spend is unlimited – on the proviso that you repay your entire outstanding balance in full every month.
Unconventional credit providers
Of course, some of the big banks also have their own “Private Banks”, which are separate institutional banks that cater exclusively to the bank’s high net wealth clientele. These clients are given their own personal Private Banker, who will cater to their individual needs, including increasing credit limits to more accurately match each client’s spending habits and needs. Depending on your other banking needs, you may also find there are some banks out there willing to negotiate for larger limits, higher facilities and more flexible products. This is sometimes dependent on your income and current spending patterns.
High limit balance transfer credit card
Throughout the introductory term where the interest rate is still low, you have the benefit of being able to put more of your hard earned money towards reducing your balances very quickly. Just be sure that you work out how much you need to repay each month to reduce your balances. Otherwise you could end up with a large credit amount being charged at the much higher rates once the introductory offer ends.
Case Study: Mary
Mary has found that she regularly ends up going over her available credit limit just paying for normal monthly expenses. One of the drawbacks of being limited by this is that penalty fees and charges apply when she goes over that amount. Aside from this, she could find that her transactions are refused when she tries to use her card to pay for other things once she’s gone over her available limit.
When the banking reforms were introduced, Mary opted in to allow her bank to send her credit increases. As she has been paying off all her outstanding balances, she applies for a raise in her limit to a more suitable amount.
How to compare high limit credit cards
Your spending habits
Before you make any changes to your credit card account, always be sure you’re making a decision based on your own financial needs. There are times when applying for a higher credit limit might not be the right option for you. In fact, if you’re thinking of raising your limit so you can include internet shopping expenses on your card, you might be better off applying for a low rate card with a low credit limit. This will let you pay for those online purchases, but will help to minimise your risk in the case of fraudulent activity, especially if you link those purchases to a card with a high spending limit.
Keep in mind that banks will take a close look at your spending history before they approve a credit limit increase. If the only reason you keep going over your current credit limit is because you aren’t paying down your balance far enough each month, your bank may decline your application for a larger limit. They can clearly see that you’re carrying a debt over from month to month and still trying to spend more money, so this will give them doubt as to whether you’d be able to handle a larger credit amount. The same is true if your account shows multiple missed payments or late payments, as the bank can already see you’re struggling to afford to repay the amounts you’ve already spent.
Ease of increasing your limit
Other banks will happily raise your limit over the phone. The representative may ask you a few questions about your account usage and spending levels, but if your account is in good order, this should be approved right away.
Some banks do offer a handy ‘credit limit increase application’ button that is available right from their secure online banking website. You can log into your account banks, and apply for your limit increase online. This only takes a few minutes in most cases, although some banks may request verification of your income amount before they complete your approval. The Commonwealth Bank allows you to increase your credit limit from inside their online banking portal.
Pros and cons of credit cards with a high limit
- High credit limit. In many cases, the prestige cards such as Gold, Platinum and Black cards tend to feature higher than usual credit limits. With most banks, a Platinum card may have a maximum credit limit of up to $100,000, while a Gold card might have a maximum limit of up to $50,000.
- Useful for business expenses. Business banking accounts may often have limits that exceed these amounts. However, these may need to be arranged by negotiation with your individual business banker.
- Dependent on income. The highest credit limit available to you will be dependent on a range of factors. The type of credit card you have may be limited to a predetermined maximum limit. Your own income may be the limiting factor, as the bank needs to consider whether the amount you earn will be enough to cover the credit amount you’re applying for.
- Excellent credit history needed. If you have a regular ‘classic’ credit card right now and you’ve displayed and excellent history of always paying off your balances on time, your bank may automatically offer to increase your account to a higher credit limit. For example, if you currently have a $5,000 limit, they may let you increase this up to $10,000.
Things to avoid when it comes to high limit credit cards
- Exceeding your limit
There are times when you may have spent more than you intended and become dangerously close to your credit card’s available limit. When this happens, you may not be able to use your card to pay for any further purchases until you pay that balance down a bit. Unfortunately, if your interest charges are due and you’re very close to your limit, the interest amount may be enough to tip you over your credit limit. As of June 2012, the banks are now required to contact you when your credit card is getting close to its limit. This should give you a reminder that you need to make a payment or perhaps stop spending for a while so you can get it back down again. The easiest way to avoid exceeding your credit limit is to ensure that you always make regular repayments off your account. This will help keep your balance under control and avoid tipping you over your credit limit.
Frequently asked questions
How do I increase my credit limit?
Since the credit reforms in July of 2012, banks can no longer send you unsolicited credit increase offers. That doesn’t mean you can’t increase your credit limit, you just have to request it from your bank.
Can a high credit limit credit card affect your credit history?
The actual credit limit you have on your credit card account can’t technically affect your credit history. Your credit report may show the enquiry listed for a credit card with a high limit. However, if you pay your bills on time and keep your balances low, you won’t show any negative entries on your credit report, such as defaults. However, when you do have a high credit limit this is enough to affect your serviceability. This is your borrowing capacity, or the amount you’re able to borrow when applying for other types of credit.
Is there such thing as a no limit credit card?
By comparison, a charge card has no limit in place simply because you’re not being offered a line of credit. There is also no interest rate advertised, because you don’t have to pay interest. This is simply because you are required to repay your entire balance in full each month in order to keep your account. Your purchases are approved on an individual basis that is based on your repayment history, your purchase history, and your financial position, including your assets.