REVscene - Vancouver Automotive Forum


Welcome to the REVscene Automotive Forum forums.

Registration is Free!You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today! The banners on the left side and below do not show for registered users!

If you have any problems with the registration process or your account login, please contact contact us.


Go Back   REVscene Automotive Forum > Vancouver LifeStyles (VLS) > The Business and Financial Forum

The Business and Financial Forum THIS SPACE OPEN FOR ADVERTISEMENT. YOU SHOULD BE ADVERTISING HERE!
Revscene Wall Street.
Consolidating debt? Good business tips? Buying stock? How's our economy doing? Discuss and share advice and tools on everyday banking, investing, wealth management and insurance.

Reply
 
Thread Tools
Old 01-01-2011, 01:31 PM   #1
My homepage has been set to RS
 
sdubfid's Avatar
 
Join Date: Aug 2002
Location: AB/BC
Posts: 2,215
Thanked 1,205 Times in 384 Posts
Raising VISA credit limit??

Usually visa will send me a letter every 6months-1 year saying they've raised my credit limit $500-1000.

This time they sent me a letter saying they want to increase my credit limit subject to my approval. They want my employers info and income.

I pay it off every month if I even use it and the credit limit is already way more than I would ever spend on it.

Is there any advantage to having the higher credit limit? Or do they just want me to spend more so they can make more money?
Advertisement
__________________
69 Camaro LS/T56
sdubfid is online now   Reply With Quote
Old 01-02-2011, 05:38 PM   #2
I keep RS good
 
Ulic Qel-Droma's Avatar
 
Join Date: May 2001
Location: Cosmos
Posts: 28,657
Thanked 5,537 Times in 1,501 Posts
dont raise it unless you know you're gonna be spending more, like buying a car with a credit card lol.
they just want your money.
Ulic Qel-Droma is offline   Reply With Quote
Old 01-03-2011, 07:02 PM   #3
Banned (ABWS)
 
Join Date: Jun 2010
Location: Canada
Posts: 1,566
Thanked 383 Times in 155 Posts
^ If only dealerships will let you buy a car on a credit card. They usually cap it at $2000-5000 max, remainder by cheque / cash.
RevRav is offline   Reply With Quote
Old 01-04-2011, 01:07 AM   #4
HELP ME PLS!!!
 
johny's Avatar
 
Join Date: Jan 2004
Location: here
Posts: 5,793
Thanked 146 Times in 67 Posts
canada has changed the law and now they can't up your limit without asking you. which is a good thing. mine kept getting raised every year before and it was getting ridiculas. I'm never going to spend anywhere near my limit.
johny is offline   Reply With Quote
Old 01-04-2011, 10:34 AM   #5
Diagonally parked in a parallel universe
 
TheNewGirl's Avatar
 
Join Date: Aug 2009
Location: Coquitlam
Posts: 1,476
Thanked 522 Times in 263 Posts
Given VISA robs merchants of 1-2%, most places don't like you using it for more then $5000 (some places less).

And yeah the way the law works now they need your permission to increase your credit limit. If you don't need it, it's probably best not to take it.
__________________
~ Just another noob looking for a clue
TheNewGirl is offline   Reply With Quote
Old 01-04-2011, 12:34 PM   #6
MiX iT Up!
 
tiger_handheld's Avatar
 
Join Date: May 2006
Location: vancouver
Posts: 8,133
Thanked 2,066 Times in 865 Posts
Quote:
Originally Posted by sdubfid View Post
Usually visa will send me a letter every 6months-1 year saying they've raised my credit limit $500-1000.

This time they sent me a letter saying they want to increase my credit limit subject to my approval. They want my employers info and income.

I pay it off every month if I even use it and the credit limit is already way more than I would ever spend on it.

Is there any advantage to having the higher credit limit? Or do they just want me to spend more so they can make more money?

You should have a limit that is relevant to your needs. For an average person who uses their credit card for groceries, utility bills, etc. i say a limit of $6-7000 is more than adequate, especially if you pay ur balance at the end of the month.

If you have a limit of say 10,20,35k the chances of qualifying for a loan from any bank is low due the amount of credit you have available. When the bank calculates your debt service ratio, they pretend that you have used up your entire credit limit of 10,20,35k. The result of that determines how much they will loan you, if at all. Lower limit, less risk for the bank, because they know that after they approve you for a 240k loan, you will not go and spend 35k on the cc - and not be able to pay off your loan payment.
__________________

Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.


Make the effort and take the risk..

"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt
tiger_handheld is offline   Reply With Quote
Old 01-04-2011, 12:44 PM   #7
I contribute to threads in the offtopic forum
 
BoostedBB6's Avatar
 
Join Date: Mar 2004
Location: Vancouver
Posts: 2,799
Thanked 1,831 Times in 587 Posts
Take as much as you can get!

If you are someone that has the self control to not spend the money then it is a benefit later in life.

For instance, if you are looking at purchasing a new home. The bank will look at all your available assets (that included credit cards). If you have a higher limit that will benefit you there. They may ask you to lower you limit if they approve your home lone just to make it harder for you to miss a payment to them.
It can be very beneficial to you if you have a large limit on your cards but you have to be wise about it.

Keep in mind, if they approve you for an increase you can always take the increase when you feel you would need it.

Just my 2 cents.
__________________
15' Lexus RC-F

07-17 G37 RWD Coupe Coilovers FOR SALE BRAND NEW
BoostedBB6 is offline   Reply With Quote
Old 01-04-2011, 12:51 PM   #8
Da Vinci's real masterpiece: The Mona Diesel
 
Jsunu's Avatar
 
Join Date: Nov 2007
Location: Richmond
Posts: 1,797
Thanked 563 Times in 247 Posts
Quote:
Originally Posted by FDTT View Post
Take as much as you can get!

If you are someone that has the self control to not spend the money then it is a benefit later in life.

For instance, if you are looking at purchasing a new home. The bank will look at all your available assets (that included credit cards). If you have a higher limit that will benefit you there. They may ask you to lower you limit if they approve your home lone just to make it harder for you to miss a payment to them.
It can be very beneficial to you if you have a large limit on your cards but you have to be wise about it.

Keep in mind, if they approve you for an increase you can always take the increase when you feel you would need it.

Just my 2 cents.
Quote:
Originally Posted by tiger_handheld View Post
You should have a limit that is relevant to your needs. For an average person who uses their credit card for groceries, utility bills, etc. i say a limit of $6-7000 is more than adequate, especially if you pay ur balance at the end of the month.

If you have a limit of say 10,20,35k the chances of qualifying for a loan from any bank is low due the amount of credit you have available. When the bank calculates your debt service ratio, they pretend that you have used up your entire credit limit of 10,20,35k. The result of that determines how much they will loan you, if at all. Lower limit, less risk for the bank, because they know that after they approve you for a 240k loan, you will not go and spend 35k on the cc - and not be able to pay off your loan payment.

Hmm two contradictory statements. Who should I listen to
Jsunu is offline   Reply With Quote
Old 01-04-2011, 01:10 PM   #9
I contribute to threads in the offtopic forum
 
BoostedBB6's Avatar
 
Join Date: Mar 2004
Location: Vancouver
Posts: 2,799
Thanked 1,831 Times in 587 Posts
Listen to what ever works best for you.

Talk to a credit consultant. That is what I did and that is the advice I was given by them.
When it came down to it I have more assets for a big purchase and the bank saw that as a good thing. I did have to get rid of some of the limit but it was a good thing for me at the time.
__________________
15' Lexus RC-F

07-17 G37 RWD Coupe Coilovers FOR SALE BRAND NEW
BoostedBB6 is offline   Reply With Quote
Old 01-04-2011, 01:15 PM   #10
MiX iT Up!
 
tiger_handheld's Avatar
 
Join Date: May 2006
Location: vancouver
Posts: 8,133
Thanked 2,066 Times in 865 Posts
Quote:
Originally Posted by Jsunu View Post
Hmm two contradictory statements. Who should I listen to
listen to me because i was told this by a RBC credit manager. I decreased my visa limit because i didn't want any additional credit.

I'm not sure if credit cards are viewed as assets because if you carry a balance its a liability. Usually an asset is defined as something you can sell and get some money back ( property, car, collections, etc..). with a credit card you can't sell it and get money back.
__________________

Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.


Make the effort and take the risk..

"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt
tiger_handheld is offline   Reply With Quote
Old 01-04-2011, 01:16 PM   #11
MiX iT Up!
 
tiger_handheld's Avatar
 
Join Date: May 2006
Location: vancouver
Posts: 8,133
Thanked 2,066 Times in 865 Posts
Quote:
Originally Posted by FDTT View Post
Listen to what ever works best for you.

Talk to a credit consultant. That is what I did and that is the advice I was given by them.
When it came down to it I have more assets for a big purchase and the bank saw that as a good thing. I did have to get rid of some of the limit but it was a good thing for me at the time.
point proven. They probably decreased your limit so you fall within the proper debt service ratio.
__________________

Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.


Make the effort and take the risk..

"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt
tiger_handheld is offline   Reply With Quote
Old 01-04-2011, 01:28 PM   #12
Wunder? Wonder?? Wander???
 
dave123's Avatar
 
Join Date: Mar 2002
Location: Vancouver
Posts: 229
Thanked 38 Times in 21 Posts
As long as your not some retard that over spends and cant make full payments then a higher limit is beneficial. My limit is 25K, and its handy at times when you need to charge larger purchases and for emergencies. I try to max on points too for flights.

Just dont fall into the trap of signing up for multiple cards. Thats where it can impact your credit rating when your applying for a loan or mortgage.
dave123 is offline   Reply With Quote
Old 01-04-2011, 01:40 PM   #13
Da Vinci's real masterpiece: The Mona Diesel
 
Jsunu's Avatar
 
Join Date: Nov 2007
Location: Richmond
Posts: 1,797
Thanked 563 Times in 247 Posts
Quote:
Originally Posted by dave123 View Post
As long as your not some retard that over spends and cant make full payments then a higher limit is beneficial. My limit is 25K, and its handy at times when you need to charge larger purchases and for emergencies. I try to max on points too for flights.

Just dont fall into the trap of signing up for multiple cards. Thats where it can impact your credit rating when your applying for a loan or mortgage.
I am just trying to see whether or no having a higher limit is benificial in the long run. Maybe ill just get pre-approved for a moragage now to see how much I can borrow in the future.
Jsunu is offline   Reply With Quote
Old 01-04-2011, 05:43 PM   #14
RS controls my life!
 
xmisstrinh's Avatar
 
Join Date: Jul 2010
Location: Vancouver
Posts: 737
Thanked 287 Times in 111 Posts
Quote:
Originally Posted by dave123 View Post
As long as your not some retard that over spends and cant make full payments then a higher limit is beneficial. My limit is 25K, and its handy at times when you need to charge larger purchases and for emergencies. I try to max on points too for flights.

Just dont fall into the trap of signing up for multiple cards. Thats where it can impact your credit rating when your applying for a loan or mortgage.
emergencies should never be run on a credit card. use a line of credit.
a person would be stupid to put a 4k home repair bill on a credit card without having cash or a payment plan to pay it back....
__________________
Put this on your profile if you know someone who has died of
Cancer or whom maybe suffering from it.
----///-\\\----
---|||---|||---
---|||---|||---
---|||---|||---
----\\\-///----
-----\\///-----
------///\-----
-----///\\\----
----///--\\\---
xmisstrinh is offline   Reply With Quote
Old 01-04-2011, 10:11 PM   #15
Ready to be Man handled by RS!
 
Join Date: Nov 2006
Location: Vancouver
Posts: 82
Thanked 2 Times in 2 Posts
Credit cards are NEVER assets, assets are what u OWN, like cars, house, investments, etc, what banks look for in particular when u apply for a loan are liquid assets (savings, non-registered investments, cash) and your networth which are assets minus liabilities, if its positive then you're in good shape.

They dont usually take the whole limit of your credit card when they calculate you debt serving ratio, most banks take a percentage, usually 3%. And if they are concerned about your high limit on your Visas, when u apply for lets say a mortgage, they will just tell u to decrease the limit.

What affects your credit worthiness more is how u handle it, not how much/little u have
ehhhwik is offline   Reply With Quote
Old 01-04-2011, 10:15 PM   #16
MiX iT Up!
 
tiger_handheld's Avatar
 
Join Date: May 2006
Location: vancouver
Posts: 8,133
Thanked 2,066 Times in 865 Posts
Quote:
Originally Posted by ehhhwik View Post
Credit cards are NEVER assets, assets are what u OWN, like cars, house, investments, etc, what banks look for in particular when u apply for a loan are liquid assets (savings, non-registered investments, cash) and your networth which are assets minus liabilities, if its positive then you're in good shape.

They dont usually take the whole limit of your credit card when they calculate you debt serving ratio, most banks take a percentage, usually 3%. And if they are concerned about your high limit on your Visas, when u apply for lets say a mortgage, they will just tell u to decrease the limit.

What affects your credit worthiness more is how u handle it, not how much/little u have
does that differ from bank to bank or is it pretty standard? I ask cuz i was told 100% from RBC. regardless +1 to ur post.
__________________

Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.


Make the effort and take the risk..

"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt
tiger_handheld is offline   Reply With Quote
Old 01-05-2011, 02:29 PM   #17
Banned (ABWS)
 
Join Date: Feb 2009
Location: Kits/Richmond
Posts: 4,409
Thanked 1,105 Times in 540 Posts
Quote:
Originally Posted by xmisstrinh View Post
emergencies should never be run on a credit card. use a line of credit.
a person would be stupid to put a 4k home repair bill on a credit card without having cash or a payment plan to pay it back....
Using a CC is fine as long as you have the means to back it up.

When I traveled across the country I ran into a $1K repair bill, threw it on the CC and paid it off when the bill came. CC is nearly universally accepted, with a LOC you've got to find a way to transfer the funds to be used, which is not hard using mobile banking, yet not as easy as a CC, nor gains you points.
taylor192 is offline   Reply With Quote
Old 01-06-2011, 08:29 PM   #18
Wunder? Wonder?? Wander???
 
dave123's Avatar
 
Join Date: Mar 2002
Location: Vancouver
Posts: 229
Thanked 38 Times in 21 Posts
Quote:
Originally Posted by xmisstrinh View Post
emergencies should never be run on a credit card. use a line of credit.
a person would be stupid to put a 4k home repair bill on a credit card without having cash or a payment plan to pay it back....
A line of credit is good since it has a lower interest rate but I was referring to emergencies like when your in another country and your flight is cancelled or you missed it and you need money to cover costs. Unless you have an HSBC bank account your most likely not going to be able to access a line of credit abroad.

Also if you need to reserve say a hotel or car rental and your credit card limit is very low the pre-authorization that some vendors take may not go through on your card.
dave123 is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT -8. The time now is 09:15 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
SEO by vBSEO ©2011, Crawlability, Inc.
Revscene.net cannot be held accountable for the actions of its members nor does the opinions of the members represent that of Revscene.net