How Can I Get a Bad Credit Credit Card with a High Spending Limit?

How Can I Get a Bad Credit Credit Card with a High Spending Limit? 5.00/5 (100.00%) 1 vote

Content  updated  9/2014:  Most credit cards for bad credit start out with very low limits, usually around $500.  There are ways to get that amount increased, and here are a few tips to help you achieve that goal.

bad credit credit card with high spending limitFirstly, make sure the company you are applying works with consumers with bad credit.  Read the requirements the lender gives for approval.  If it says good – excellent credit required move on!  If it says bad credit ok, or if they are a subprime lender, you have a better chance of getting approved.

  • Prove to card issuers that you can really afford it. In the past, when I have a bad credit borrower at my desk, I always tell them its not going to be as easy to get them approved for a loan as their good credit counterpart.  I have them collect supporting documents to show that yes, they can afford the payment AND I give a clear explanation for the low credit score.  I also include all steps taken they have taken to improve their credit.  Additional documentation that I ask them for are:
    • 3- 6 months recent pay stubs
    • letter of explanation for the low credit score – I tell them to explain it as thoroughly and honestly as they can.
    • I have them END the letter with all the steps they have taken to improve their credit score and why they fell this loan isn’t as high risk as their credit score may make the lender believe

How To Apply For A Credit Card Using This Method

If you are applying at the banks location, schedule a time to meet with their credit officer.  Show them your current credit report and tell them what you are attempting to do.  Give them all the supporting documents that you have gathered and see if they can help you.  I know I am always impressed when someone comes in, well dressed, knowledgeable, confident and already financial documentation to prove their point.  I give them brownie points, I bet your local bank will too!

If you are applying online.  Wait for your approval.  When your card comes call the customer service line on the back and ask for the credit limit increase department.  Talk to a rep, tell them you want a credit limit increase and why.  Ask them if they would be willing to accept additional information to help make their decision.  Some will give you a fax number and some companies may tell you to wait 6 months and call back.  This is all dependent on YOUR credit. If your credit score is really low, a lot of times they will automatically tell you wait 6 months and call back.  During that 6 month period, use the time to pay down debt and clean up your credit a bit more and then call them again, with your supporting documentation ready to fax or email over to them.

Does this really work?

I have to admit this works best with credit unions.  When I worked at a credit union, my old branch manager trained me in the above method.  Credit Unions really work hard to help their members.  Approaching banks like BofA will be more difficult.  They have a strict policy and most branch managers don’t have the authority to make a credit decision that falls outside of their strict rules.  I think smaller, local banks with ties to their community are the best to approach.

  • Be ready to pay a higher interest rate than good credit people,  you would be surprised how many people want an A credit rank but have D credit.  Be realistic.  Not until you prove that you are not a high risk borrower, should you demand a lower interest rate.  Actions speak louder than words.  If you want a low rate, show them how you are now faithfully paying all your debts on time.  It will take several months, if not years to prove your credit worthiness (this depends on your credit).  The better your credit is now, the shorter time period before you can look forward to lower interest rates.
  • Have a creditworthy co-signer. If you have a close friend, colleague or relative who possesses a good – to excellent credit score, you may be able to ask them to co-sign on a credit card for you.  This is one of the fastest ways not only to obtain a credit card with a high credit limit, but it will usually also have a much lower interest rate then if you applied on your own.  Even though this is the fastest way,  its also one of the HARDEST!  You first have to find someone willing to put their financial future on the line for you.  If you fail to pay on this card, it becomes the responsibility of the co-signer to pay it for you.  Also any late payments will be reflected on their credit report.  So their good credit can swiftly turn to bad due to your IRRESPONSIBILITY !  If you can’t make a payment make sure you tell them before the due date and maybe they can make it for you.  At that point don’t be surprised if they close the card!  There are not a lot of people (outside of your mother) who really want to put their credit on the line for someone else.  Don’t take offense if a friend or family member turns you down.  A responsible co-signer knows they may be responsible for making the payments and while they have good credit themselves, they may be financially strapped.  And the thought of being responsible for someone elses $5000 credit card payment, maybe too much for them to handle.

At the end of the day, if you want to get a high limit credit card with a decent rate you need to start practicing good credit habits.  Make sure you pay your card on time.  No excuses, even if one month you can only pay the minimum amount due.  Its best to try and pay the card off each month.  For a lot of people that is impossible, but don’t max it out, or worse yet go over your limit (massive fee) !

If you practice good credit habits over time you will be able to not just negotiate higher credit limits but also lower interest rates.

Ready to look for a new high limit bad credit credit card

BAD CREDIT-OK and NO CREDIT CHECK!

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Melanie Mathis

Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook.

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4 comments for “How Can I Get a Bad Credit Credit Card with a High Spending Limit?

  1. Kristina
    March 18, 2010 at 9:55 pm

    I THINK THAT POEPLE DESERVE A SECOND CHANCE. ACCORDING TO YOU PEOPLE IF SOMEONE IS DUMB WHEN THEY ARE 18 OR SO THEY HAVE TO PAY FOR IT FOR THE REST OF THEIR LIVES!!! WELL I AM ONE OF THOSE POEPLE AND I AM TRYING TO MAKE ALL MY BAD INTO GOOD BUT IT ISNT EASY. SO BECAUSE I HAD MY HEAD IN MY ASS WHEN I WAS YOUNGER I AM SCREWED ALSO!!! BUT I FORGOT EVERYONE IS SUPPOSE TO BE PERFECT LIKE YOU PEOPLE!

  2. Jamie94
    April 22, 2009 at 10:10 pm

    Good grief, it’s exactly this scenario, people borrowing money they have no way of paying off, that led to the crisis we’re in now. Thankfully, that whole fiasco is still new enough that banks are being more careful about who they’ll lend to. Here’s to hoping they stick to their guns and keep denying cards to people who can’t use them responsibly.

  3. Angeles
    May 14, 2009 at 2:39 am

    If you have bad credit, there are several choices. Besides credit cards, you may want to consider getting a bad credit signature loan,or a peer-to-peer loan.

  4. Golicoosusy
    June 5, 2009 at 12:29 am

    ID fraud is one of the biggest crime in the U.S today. Every four seconds someone’s identity is stolen.There are now several id theft protection services on the market to address this problem. The question now becomes which identity theft protectionprovider is right for you.

    You might also want to consider a credit report monitoring service to provide you an extra layer of protection that many identity theft protection services don’t always provide. Many of these credit monitoring services offer a free trial where you’re able to get obtain your credit report for free

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