Credit card Q&A: “What credit card limit can I get?”

Consumers are often curious about what they’ll qualify for in the way of a credit card, if approved at all.

Unfortunately, it’s always a bit of a mystery until after you apply and receive your credit card (and its related terms).

But you can certainly clue yourself in a bit before you apply.

Credit card issuers tend to look at two main things, including your credit score and your income.

It used to be household income, but now it’s just your income, since living with your wealthy parents doesn’t necessarily mean they’ll pony up if you can’t pay your debts.

Credit card companies also ask for employment information (and schooling prior to that) to get a better idea of what you make, considering the fact that you simply state a number on the credit card application.

They then take this information and look at it alongside your credit score, along with the information in your credit report, to determine your credit card limit.

Lower Credit Scores and Income = Lower Credit Card Limits

Generally, those with lower credit scores and lower gross annual income will receive lower credit card limits, and vice versa.

So a consumer with an average credit score and low income who applies for a credit card may receive a $3,000 credit card limit, while a consumer with an excellent credit score and higher-than-average income may receive a $25,000 credit card limit.

Of course, it’s hard to just say you’re this, so you’ll get that.

The takeaway is higher income and credit scores equals higher credit card limits.

Additionally, those with limited credit history will see lower limits than those with proven track records of supporting large amounts of debt, so understand that it takes time.

Keep in mind that charge cards don’t have a pre-set spending limit, but must be paid in full each month.

Tip: Having a lot of outstanding credit card debt can lower your credit score, so it’s best to keep balances to a minimum, regardless of your credit card limit.

Debt relief programs are designed to help average consumers to overcome their debt problems and manage their financial situation. If you have such kind of problems, don’t desperate. Debt relief specialists can reduce the entire amount of debt up to 60%, and your credit score will increase in 12-24 months.

If you decide to allow an expert to handle your debt settlement, it is important that you have confidence in this company. Some basic check of the background of counselors and personal references will be of great help in finding the best adviser for your situation. Remember, you do not get into debt in one day and you will not be free of debt overnight. Any person making such bold claims must be wary of.

There are many great notch specialists specialize in debt settlement credit card. T Read full article…

People in rural areas of Australia are spending more than those who live in metropolitan locations, according to a new study.

The ANZ Small Business Sales Trends series found that regional and rural small businesses had seen a 1.9 per cent growth in trade during April 2011.

This is in comparison with the minus 0.1 per cent that it saw for firms that are based in bigger locations.

ANZ head of economics and property research Ivan Colhoun explained that the results are found by processing the value of credit card and eftpos transactions seen in the banks system for firms with an annual turnover of $5 million or less.

Mr Colhoun said it is likely to be down to Australias two-speed economy, with “regional areas in general benefiting more from the commodities boom and metropolitan centres arguably more impacted by the Reserve Banks restrictive monetary policy”.

A recent study from the Australia Institute suggested that many consumers are using their debit cards and other payment options to save money by shopping online.

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National home prices hit a new low in March, giving credence to long-simmering worries about a double dip in the housing market.

The widely watched S&P/Case-Shiller home price index showed that home prices fell below their previous lows nationally and in the Chicago area, prompting the report’s authors to declare an official double dip in home prices. In the U.S., home prices plummeted to their mid-2002 levels. In the Chicago area, prices in March were at levels not seen since April 2001.

The Chicago area has been one of the country’s weak spots for months, with local home prices  falling since November 2010. In March, according to the index, home prices slipped 2.4 percent from February and were down 7.6 percent on an annualized basis.

Condominium values plummeted even more in the Chicago area. Read full article…

Millions of Americans have credit cards, and most do not use them responsibly. In fact, the majority of credit card holders do not even know how to use their credit cards responsibly, but does the very fact of having a credit card and a credit card limit available to spend make some customers spend more? Some experts say yes, even if the borrower knows that they will end up paying a great deal more on money they spend with their credit card. The fact is, many people unconsciously factor in their credit card limit when they think about how much money they have to spend, and if they have already spend their paycheck, the credit card is a temping option when they want something.

This question has been the focus of heavy debate for years.

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