Author: Lisa Johnson
Most credit card issuers assigns a credit limit when you open a new account. This line of credit ranges from $200 to tens of thousands of dollars, but you can’t spend more than your credit card limit in most situations. You can get a higher credit limit with almost any credit card if you have a good or excellent credit score and a consistent income. Regardless, some credit card issuers’ highest limit is $5,000 cap.
How Much Should You Spend With A $5,000 Credit Card Limit?
You have complete discretion over how much of your credit line you use. However, if you are trying to establish or restore credit, keep your outstanding debt to no more than 30% of your credit limit. If you have a $5,000 credit line, for example, restrict your card use to an outstanding debt of $1,1500 – especially if you are trying to establish or rebuild your credit score.
As previously stated, a 30 percent credit usage ratio serves as a dividing line between positive and negative expenditure. If you don’t have an outstanding debt of more than 30% for two or more months, you should be fine. Here are some financial institutions that offers a $5,000 Credit Card Limit:
1. Bank of America Customized Cash Rewards Credit Card
After creating a credit card account, the card offers a 0% APR for 15 payment cycles. You must execute a transaction within 60 days of opening the credit account to be eligible for the incentive. Additionally, there is a cost for transferring your balance.
Bank of America Cash Rewards Credit Card gives a good purchase reward rate based on the merchant category you select. Depending on the merchant category, other purchases get lesser cashback rates. Also, a signup bonus will be given to you if you spend a specified amount on purchases during the first 90 days of using your account.
2. Chase Freedom Flex
If you spend $500 on purchases in the first three months of creating your account, you’ll get a $200 bonus. Purchases and balance transfers have a 0% intro APR for the first 15 months, then a variable APR of 15.24% – 23.99%
3. Chase Freedom Unlimited
Get an extra 1.5 percent cashback on everything you spend (up to $20,000 in the first year) – up to $300 in cashback! You don’t have to pay an annual fee to enjoy all of the benefits of your Freedom Unlimited card. Purchases and balance transfers will have a 0% intro APR for the first 15month, followed by a variable APR of 15.24% – 23.99%
4. Credit Line As A Credit Card Option
A line of credit is a flexible loan from a bank or other financial institution that allows you to borrow money as needed. A credit card is an example of a line of credit, but there are other options. With Credit Line, you will be given a certain amount of money to spend, but you don’t have to pay interest until you’ve borrowed the money.
Conclusion
Discussed above are useful information that will help you to get a credit card with a reasonable limit, and manage your credit score responsibly.