How do I get a high limit credit card?

You can get a high limit credit card by having either good or excellent credit and demonstrating your ability to afford a high spending limit; your income, assets and existing debt obligations will be taken in consideration. Picking the right credit card goes a long way, too.

If you’re applying for a new credit card with a high limit, your best bet is to target cards known for high minimum initial credit limits. Cards’ terms and conditions usually show the minimum limit, and there are plenty of cards that start at $5,000 to $10,000. But you should make sure you know the ins and outs of high limit credit cards before you apply.

In general, your credit limit is determined by the credit card issuer, based primarily on your income and credit history. So, the higher your income and the better your credit history, the more likely you will receive a new card with a high initial credit limit. But issuers take other things into account too, like the number of other accounts you have and the length of your history.

Here is how you can get a high credit limit on your credit card:

• Apply for a credit card with a high starting limit. There are several credit cards with minimum credit limits of $5,000 and some that come with a $10,000 starting credit limit.

  High limit cards usually come with annual fees, so you’ll have to decide if high spending power is worth it. They also often have good travel rewards.

• Improve your credit score. High limit credit cards typically require good or excellent credit. If you check your latest credit score and discover that you don’t qualify, that means you have some work to do.

  You need to add positive information to your credit report, which you can do by using a credit card responsibly and catching up on any past-due bills, among other things. You can check our editors’ latest picks for the best credit cards to build credit.

• Earn a higher credit limit with good behavior. Once you have paid on time for several months, you will be eligible for credit limit increases. The issuer may automatically raise your credit limit after reviewing your account, usually in 6 to 12 month intervals. How much depends on how responsibly you are using the card. Not all issuers will give automatic increases.

  An automatic increase is typically a soft inquiry which will not show up on your credit report. An issuer must get your permission to generate a hard inquiry for a credit limit increase.

• Request a credit limit increase. You can also request a credit limit increase, either online or by calling the issuer’s customer service department. You will either get the requested increase, receive a lower counteroffer from the issuer or be denied the increase.

  Requesting a credit limit increase usually results in a hard inquiry, which could hurt your credit score. However, some issuers – including Wells Fargo – now use soft inquiries in most cases.

A high limit credit card will help raise the total available credit listed on your credit report, which can help to lower your overall credit utilization ratio. You should aim for credit utilization below 30%. If you’re unable to get a high limit card, you can pay off purchases right away to free up spending power.

You need to have excellent credit in order to get approved for a high limit credit card. However, that might not be enough, because issuers also look at your income, monthly expenses, payment history and credit utilization before approving you.

Your score is the first part. Anything above 700 should be okay, depending on the credit card you choose.

The most important element is your income. Your credit limit is calculated based on your current debt and income. If you've got the salary to pay it, you'll get a high limit.