High-limit credit cards explained

Credit cards come with a credit limit. This is the maximum amount you can borrow and will depend on things like your credit history, income and other financial obligations. It’s possible to get a card with a limit of £10,000 or much more. Read our guide to find out more.

How do high-limit credit cards work?

High-limit credit cards, also known as Premium cards, work like other credit cards but allow you to spend and borrow more. So, like other cards, a card with a high limit is basically a way of borrowing money to pay for things. You’re borrowing whenever you pay for something using the card. You have to make a minimum payment every month to pay back what you’ve borrowed. If you don’t pay back the total you’ve spent, you’ll usually be charged interest.

How high can a credit limit be?

High-limit cards tend to have limits in the tens of thousands of pounds. In rare cases, people can have a card with no limit, but the card issuer would still need to approve the individual amounts the cardholders spend.

What are the pros and cons of high-limit credit cards?

To get a high-limit credit card, you’ll need to have a relatively high income. Even if you would qualify for one, it’s worth thinking about the cons as well as the pros.

Pros:

• Making large purchases. The main advantage is that you can make expensive purchases easily.
• Rewards and perks. High-limit cards usually offer rewards, including travel perks, cashback, or points you can redeem to pay for items or tickets for various types of entertainment.
• Maintaining a good credit score. In theory, keeping well within a higher limit can suggest you’re using a lower amount of credit than you could afford to use. Lenders usually see this as a good thing.

Cons:

• Running up debt. Having a higher limit can make it tempting and easier to overspend and rack up debts.
• Damaging your credit score. If you don’t manage things carefully your credit score could go down. Missing payments, or spending near the limit without paying the bills in full, could have a negative impact.
• Fees. High-limit credit cards usually have annual fees. If you don’t use the perks they offer – and don’t end up taking advantage of the higher spending power - you won’t get value for money. And their interest rates are usually higher than standard cards.

Who needs a high-limit credit card?

If you want to make large purchases, a high-limit card can make sense. Sometimes people like these cards if they’re big spenders or they see them as a status symbol. If you’re likely to make good use of the rewards that come with a high-limit card, they could prove useful.

Who is eligible for a high-limit credit card?

To qualify for a high-limit card, you’ll need an above-average income, an excellent credit rating and sometimes to agree to a minimum monthly spend. Your income – from a salary or investments – will likely need to be at least £50,000 to £100,000 a year. You might need to be an existing customer of the relevant provider. And some cards are ‘invitation-only’.

How do you improve your chances of getting a high-limit credit card?

Assuming you meet the relevant criteria in terms of age and income, you might need to boost your credit rating to improve your chances. There are various ways to do this but they’ll take time. You can improve your credit score by doing things like making sure you’re on the electoral roll, ensuring there are no mistakes on your report and changing the way you use credit.

What rewards do you get with a high-limit credit card?

As well as the higher spending limit, these cards offer a variety of perks and rewards. The kinds of things they offer include air miles, access to airport lounges, personal assistance services, travel insurance, hotel loyalty scheme membership, and theatre and concert tickets.

How much does a high-limit credit card cost?

With high-limit credit cards, you pay an annual fee. The fee could be a few hundred pounds or much more. It’s also worth bearing in mind interest rates tend to be higher than for standard cards, so, depending on how you manage your finances, a high-limit card could prove expensive.

Are high-limit credit cards worth the cost?

To get the best value from a high-limit credit card, you need to make sure you pay off the bill in full every month and make good use of the perks it provides.

What are the alternatives to a high-limit credit card?

If it’s the perks that appeal to you, bear in mind ‘reward’ cards with more standard limits sometimes offer things like air miles. Or they might be available with a current account or phone contract. If it’s more that you want to borrow a larger sum than your current card allows as a one-off, you might be better off with a loan. Depending on the amount involved and your credit history, your current credit card provider might be prepared to increase your limit temporarily.

Does my credit score matter if I want a high-limit credit card?

As with any type of credit card, your credit score will affect if you’re eligible for a high-limit card. Lenders need to see how well you’ve managed your money in the past. Here, your score needs to be excellent as you’re effectively applying to borrow a substantial amount.

What happens if you spend more than your limit?

If you try to spend more than your limit, you might find your payment won’t go through. And there could be longer-term consequences if you do it regularly – your card could be cancelled and your credit score could go down, affecting your ability to borrow in future.

How do I get a credit card with a high limit?

As with other credit cards, you can apply online, though you could go into a lender’s branch if you’d rather get help face-to-face. You’ll need to provide details of your income, spending and any other debt.

With Experian, you can compare credit cards from a variety of companies. And you can see your eligibility rating, which means you’ll know how likely it is you’ll be approved. We don’t provide credit – we’re a broker. So, we can help you find and compare different offers all in one place.