• Sara Hayat scoured industry sources near and far to find a fill that would give the Bevel a bit of bounce while ensuring its cushions would retain their pebble-like shape. Indeed, each velvet-upholstered seat cradles a person perfectly. As it should: It takes the team about a month to hand-stitch this low-slung belted beauty. $28,495

  • Minotti who passed away in August, played with the idea of balance in the Solid Steel coffee table, despite the heavy-metal inference of its moniker. Party-ready glossy and mirrored finishes belie the architectural geometry of the streamlined, staggered slabs. Even with its fashion-forward feel (or backward: the materials reference 1970s glamour), it evokes an unflinchingly Bauhaus sensibility. Price upon request

  • Astraeus Clarke found inspiration in N.Y.C. The Roebling table lamp takes its form, albeit loosely, from the Brooklyn Bridge and its name from the bridge’s engineers, John A. Roebling and his wife, Emma. The lamp’s deep-green marble pillars support a gable-shaped top that hides the light source. But there’s a twist: That top segment pivots 360 degrees, allowing the user to direct illumination as needed. $12,500

  • New Ravenna. Duo, a waterjet mosaic, features boxy, mustard-toned cross-stitches that punctuate a large, dark grid over elegant marble with green veining. The coastal Virginia–based company replicates the texture of stone that has been well-worn by salt air, ensuring your kitchen, bath, or patio looks suitably lived-in. $229 per square foot

  • Source: robbreport.com

    Apache is functioning normally

    Apache is functioning normally

    This correlation between the average cost of living and credit card limit continues when we look at the 10 states with the lowest average credit card limit. In the chart below, the states marked with an asterisk are also on the list of states with the lowest cost of living.

    State

    Average Credit Card Limit

    Average Credit Score

    Mississippi*

    $21,676

    667

    Arkansas

    $24,570

    683

    West Virginia*

    $24,684

    687

    Alabama*

    $25,621

    680

    Louisiana

    $25,781

    677

    Kentucky

    $25,962

    692

    Oklahoma*

    $26,041

    682

    Indiana*

    $26,676

    699

    Idaho

    $26,871

    711

    Iowa*

    $27,052

    720

    Source: Experian, Wisevoter

    How Are Credit Card Limits Determined?

    Credit card companies use several factors to determine your limit, which they review periodically over time. Some factors count more than others, varying by the credit card issuer. 

    Your Credit Score

    A higher credit score indicates you are more likely to pay your debts, which tells credit card issuers you are lower-risk. As a result, people with higher credit scores often have higher credit card limits. 

    According to FICO®, a variety of factors determine credit scores, including:

    • Payment history: Your payment history determines 35% of your credit score, which shows how likely you are to pay your debts on time. 
    • Credit utilization rate: Your credit utilization rate is the ratio of the debt you owe to the total amount of credit available to you. You can factor your credit utilization rate by dividing your current balance by your total credit limit and multiplying the result by 100. A healthy credit utilization rate is considered anything below 30% —any higher and potential lenders may consider you overextended.
    • Length of credit history: The longer your credit history, the better picture a lender has of your risk level. A short history isn’t necessarily bad unless it contains a poor payment history and high utilization rate.
    • Recent hard inquiries: A hard inquiry is a record of a lender checking your credit. Too many hard inquiries in a short period can lower your credit score temporarily, so experts recommend six months between hard inquiries. 

    Credit card companies also use your credit score to determine your interest rate, so keeping an eye on your score with free credit reports is important. 

    Monthly Income

    Credit card issuers want to know if you have monthly income to ensure you can pay your debts. The higher your monthly income, the more likely you are to get approved for a higher credit limit.

    Monthly Expenses

    Credit card companies look at your total monthly expenses, especially compared to your monthly income. Generally, they’ll look at your monthly housing costs (mortgage or rent), although they may also ask for information about other regular expenses such as utilities. Your monthly expenses are then compared to your monthly income to determine your credit card limit.

    High monthly expenses won’t hurt your credit card limit as long as your monthly income is high enough to cover them.

    Debt-to-Income Ratio

    Credit card issuers also examine your debt-to-income ratio when determining your credit card limit. Experts consider anything under 36% to be a good debt-to-income ratio for a credit card.

    To calculate your DTI ratio, divide your total recurring monthly debt (mortgage, auto loan, student loans, existing credit card debt, etc.) by your gross monthly income (how much you make before taxes) and multiply the answer by 100.

    Your History with the Issuer

    If you already have a positive credit history with the company issuing the credit card, they may be more likely to give you a higher credit limit. However, if they feel you have too many cards or a rocky credit history with them, they may issue a lower credit limit.

    The Issuer’s Credit Approval Policies

    Every credit card company wants to avoid risk and crafts a specific set of policies to determine how much credit to extend to a cardholder. Its policies may consider elements not listed here or weigh factors differently than another company, which is why credit card limits are not standard across companies.

    Current Economic Outlook

    When the economy is healthy, credit card companies may be more open to taking risks and offer higher credit card limits. However, when the economy is uncertain, such as during the pandemic, issuers are less likely to take risks, offering lower credit card limits for new cardholders.

    How to Get a Higher Credit Limit

    A low credit card limit isn’t necessarily bad, but it can make getting approval for additional loans or credit challenging if your credit utilization rate is too high. It can also put large purchases, such as an appliance or unexpected car repair, out of reach. 

    To get a higher credit card limit:

    1. Call your credit card issuer and ask for an increase. Call the customer service number on the back of your card and ask the representative for a higher credit card limit. Only consider this if you are trying to lower your credit utilization rate to raise your credit score. They look for six months of on-time payments and will ask for updates on your annual income, employment status, and monthly expenses before deciding.
    2. Increase your income. Since monthly income is a factor in your credit limit, increasing your monthly income can boost your credit card limit. Ask for a raise at work, get a second job, or start a side hustle. When your credit card issuer sees you have more income, they may offer you a higher credit limit. You can update this information with them anytime by contacting them directly, or you can wait until they discover it in a periodic review of your status.
    3. Build your credit. Pay your bills on time and pay down debt to increase your credit score. Over time, your credit score should increase, which can lead your credit card issuer to raise your credit limit.
    4. Transfer the balance from one card to another. Some credit cards allow you to transfer debt from one account to another in a credit transfer. If you have multiple credit cards and one allows credit transfers, transfer the debt from one card to another. This won’t increase your credit card limit overall, but it can increase the amount of credit available on a specific card.
    5. Increase your deposit on a secure credit card. If your card is a secured credit card, your credit card limit directly correlates to your security deposit. Add more to your security deposit, and you’ll have a higher credit card limit.
    6. Open another credit card. This won’t increase the credit card limit on your current card, but it will expand how much credit is available to you. Avoid temporarily dinging your credit score by waiting six months between credit card applications.
    7. Wait. Most credit card companies annually review your account, and as long as you pay your bills on time, they can likely naturally increase your credit card limit.

    You can also always pay off purchases immediately rather than waiting until the end of your payment period to gain access to more credit without increasing your credit limit.

    Credit scores strongly indicate what your potential credit card limit will be, so learn more about yours today. Before applying for a new credit card, get a sense of where you stand with a credit report card. Then use the tools and features in ExtraCredit to see where you need to work toward your credit goals to qualify for a higher credit card limit.

    FAQ

    Here are some answers to common questions regarding credit card limits.

    What Happens if I Go Over My Credit Limit?

    If you try to make a purchase over your credit limit, most credit card companies will deny the transaction. Some may allow the purchase but charge a fee, although most companies have abandoned this practice.

    If I Request an Increase to My Credit Limit, Will That Impact My Credit Score?

    When you request an increase to your credit card limit, your credit score may drop if your credit card issuer places a hard inquiry on your credit score. This can temporarily lower your credit score, and not all credit card companies do so. 

    Source: credit.com

    Apache is functioning normally

    Apache is functioning normally

    Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.

    A score of 850 is the highest credit score possible, and to achieve it you need a great credit payment history, low credit utilization rate, and credit lines that have been open for many years.

    Many people are curious to know how to get the highest credit score possible, and while it’s an ambitious goal, do you actually need this high of a credit score? Although having the highest possible credit score is great, you don’t need the highest score to live a financially healthy life.

    In this article, you’ll learn how to get the highest credit score as well as how credit score ranges work and the benefits of a high credit score.

    Key Takeaways:

    • The highest credit score possible is 850 using the FICO® scoring model.
    • FICO’s credit scoring model ranges from 300 to 850, and anything over 740 is considered very good.
    • To achieve a perfect credit score, you need to make your payments on time, have both revolving and installment credit lines, and keep a low credit utilization rate.
    • The credit scoring factor that takes the most time is credit age, which means you need lines of credit that have been open for many years.

    How Do You Get the Highest Credit Score?

    If you’re trying to get the highest credit score of 850, you need to make all your payments on time and have a good mix of credit, a low utilization rate, and very old lines of credit. As mentioned earlier, this is an ambitious goal that not many people achieve. In fact, an Experian® report shows only 1.31% of people had perfect FICO credit scores as of Q3 2021.

    A perfect credit score is also a moving target. Periodically, there are changes to what contributes to your credit score. For example, in 2017 there were major changes like how medical bills and public records are reported to the credit bureaus. Fortunately, these changes were in favor of the consumer, but there may be future changes that could lower your score.

    FICO, the primary scoring model used by lenders, also regularly updates how it scores. Although it uses the same five factors, the latest FICO Score 10 has an updated predictive method it uses to provide consumers with a credit score.

    The Credit Profile of People with a Perfect Credit Score

    Should you decide to work toward a perfect credit score, it’s helpful to know what separates the average credit score from the perfect credit score. Obviously, those who manage to get a perfect credit score are doing something different than the average person. Experian regularly publishes credit and other financial data, and they analyzed data from the third quarter of 2021 to see what differentiates good credit scores from perfect credit scores.

    Consumer Averages

    Average for People With an 850 FICO Score

    FICO® Score

    714

    850

    FICO® Score

    3.9

    5.9

    Credit card balance

    $5,221

    $2,558

    Number of retail credit cards

    3

    4.2

    Retail credit card balance

    $1,046

    $182

    Auto loan balance

    $20,987

    $17,074

    Personal loan balance

    $17,064

    $32,872

    Mortgage balance

    $220,380

    $205,057

    Non-mortgage balance

    $21,539

    $16,482

    Total tradelines ever delinquent

    1.8

    0

    As you can see, there’s quite a bit to learn from those with perfect credit scores. They have more credit cards than the average person, but they keep their credit card balance much lower. They also have lower balances on their auto loans and have no delinquencies on their credit report.

    What Factors Affect Your Credit Score?

    The information on your credit report is used to calculate your credit score, and there are different factors credit scoring companies consider when generating your score. Below are the five primary factors used by FICO. They’re weighted, which means some factors contribute more to your score than others:

    • Payment history (35%): how often you pay your bills on time
    • Credit utilization (30%): how much you owe vs. your available balance
    • Credit age (15%): how old your lines of credit are
    • Credit mix (10%): how many different types of lines of credit you have
    • New credit (10%): how often you apply for new lines of credit

    Payment history and credit utilization account for 65% of your score, so you’ll want to focus on these areas by paying all your bills on time and keeping your utilization rate under 30%. Ideally, you’ll also want the longest credit history possible, which is why it’s good to open up lines of credit when you’re younger and keep the accounts open.

    Your credit mix is a blend between revolving credit and installment credit. Revolving credit lines include credit cards and personal lines of credit, whereas installment credit includes auto loans and home loans.

    What’s the Credit Score Range?

    Credit scores range from 300 to 850. Within the overall range, different scores are considered poor, fair, good, very good, or excellent. Some lenders or services require a minimum credit score for applicants, so it’s helpful to know where you stand. 

    FICO Score Range

    According to FICO is the primary scoring model lenders look at to determine your potential level of risk. Rather than looking at your entire credit report, this score gives lenders a rough idea of how well you pay your bills on time and how much experience you have managing lines of credit. Below is the FICO score range, but FICO also offers industry-specific scores for auto loans and other industries.

    • Poor: 300-579
    • Fair: 580-669
    • Good: 670-739
    • Very good: 740-799
    • Excellent: 800-850

    VantageScore Range

    VantageScore isn’t used as often as FICO, but some lenders will take this score into consideration. This scoring model was created by the three major credit bureaus in 2006 as an alternative to FICO. Not only is the VantageScore range different from FICO, but it also uses a slightly different scoring model.

    • Very poor: 300-499
    • Poor: 500-600
    • Fair: 601-660
    • Good: 661-780
    • Excellent: 781-850

    What Are the Benefits of a High Credit Score?

    Although you may not be able to reach a perfect credit score for a while, there are many benefits to simply having a high credit score. Remember that a good credit score may be in the 600s, but you’ll receive more benefits as your score gets higher.

    Some of the main benefits of having a high credit score include:

    • Lower interest rates: Loans and lines of credit come with interest charges that are a percentage of the overall cost. When you have a high credit score, these rates are much lower.
    • Lower deposit fees: When you sign up for certain services, like a new cell phone provider, they may check your credit score for a deposit. A higher score often means little to no deposit fee.
    • Access to more money: Should you need a loan, a higher credit score can get you approved for a larger amount assuming you have the income.
    • More housing choices: Whether you’re renting or buying, a good credit score gives you better options.
    • Better job opportunities: Some jobs check your credit as part of the application process, and a bad score may prevent you from getting hired.

    Perfect Credit Score FAQ

    Next, we answer some of the most commonly asked questions about achieving the perfect credit score.

    Can You Get a 900 Credit Score?

    No. The highest credit score possible is 850.

    Is 770 a Good Credit Score?

    A 770 credit score is good, but it’s technically considered a “very good” score in the FICO credit score range. A good score in that range is between 670 and 739.

    Can You Have a Credit Score of 100?

    No. The lowest credit score you can get is 300, but any score below 579 is considered “poor” in the FICO credit score range.

    How Credit Monitoring and Additional Reporting Can Help Your Credit Score

    If you’re looking to improve your credit score or even reach the perfect credit score of 850, a great place to start is with credit monitoring. When you have credit monitoring, you’re able to regularly check your credit score and be alerted when anything triggers a change to your score from your credit report.

    For credit monitoring and a variety of other features, sign up for Credit.com’s ExtraCredit® program. You can also get a free credit report card to see where your current credit health stands and where you can improve.

    Source: credit.com