What are high limit credit cards?

Key takeaways

• A high limit credit card provides a larger credit limit, allowing you to spend more than on a typical credit card.

• To avoid interest charges, you’ll need to pay off the entire credit card balance by the due date.

• Always choose a credit card with the best features for you, such as cashback or an interest-free period rather than focusing solely on the credit limit.

What is a high limit credit card?

A high limit credit card is one that gives you a large credit limit – allowing you to spend more or, in other words, build up a bigger balance than you might on a typical credit card.

That said, what defines a high limit depends on the individual and their credit-worthiness. Credit card issuers take a view on each application they receive and review the potential customer’s financial situation and eligibility, including their affordability and credit rating before issuing a credit limit.

While the credit limit will always come down to the individual, you will see premium credit cards advertised – often referred to as platinum or gold cards. These come with the understanding that if you’re accepted you can expect to receive a high limit.

In terms of total amounts, a premium card in the UK could have a credit limit worth tens of thousands of pounds, for example.

How do high limit credit cards work?

High limit credit cards work in the same way as credit limits on regular credit cards – they’ll just work out more expensive if you fail to clear them fully. 

You’ll be given a credit limit and can spend up to that amount on your balance. You’ll have a minimum monthly payment amount to repay each month or face a charge, and to avoid interest on the balance you must clear it in full.  

It’s often a good idea to set up a direct debit from a current account to clear a high limit credit card on time.

High limit credit cards often come with extra perks, although this isn’t always the case so be sure to check what’s included before you apply.

Am I eligible for a high limit credit card?

Whether or not you’ll be eligible for a high credit limit credit card will depend on a range of factors and your personal financial situation. An excellent credit rating, a high credit score, and a high income are a good start. But here are some things to consider:

• Consistent credit history: It helps if you’ve already shown you can borrow responsibly and keep up with repayments

• Financial situation: Any existing credit commitments and credit limits elsewhere will be considered

• Minimum annual income: You will likely have to prove you have the income to pay off a high credit limit. This varies but is likely to be at least £50,000 per year

• Loyalty: You may need to hold another financial product with the card issuer. Some high limit credit cards only come by invitation, for example, when you are already a customer

• Age: You’ll usually need to be aged 21 or older and a resident in the UK 

How can I increase the credit limit that I will be offered?

There are a number of things you can do to increase the chance you’ll be offered a bigger credit limit. These include:

• Using your existing credit card responsibly: Before applying for a credit limit increase.

• Earning more: The more income you have, the more your affordability rises and issuers will be confident you have the means to pay off a high balance.

• Keeping your credit utilisation low: By using 30% or less of your available credit, it shows your finances are not stretched and you can handle credit.

• Improving your credit score: Having a high credit score is your best hope of getting a high credit limit. It’s worth regularly checking your credit report so you know where you stand before you apply. Our guide can help with the steps you should take to improve your credit rating.

What perks can I get with a premium credit card?

While you might have to pay a fee for a premium or platinum card, there may be perks that make it worthwhile, including:

• Travel insurance

• Travel rewards

• Breakdown cover

• Air miles and frequent flyer points

• Cashback

• Concierge services or personal assistance service 

• Additional flights for companions

• Advanced tickets for sell-out events

• Reservations at top restaurants

• Airport lounge access

What costs and fees are associated with a high limit credit card?

Premium credit card users who have cards with a high credit limit are likely to be liable for card charges, including an annual fee for using the card. These can be in the hundreds of pounds so it’s worth checking you’ll use the card’s benefits before you apply.

Interest rates (the APR) may also be high if the balance is not cleared every month. This can be amplified because having a high limit allows the possibility to have a much higher balance and accrue much more in total interest.

You could also face late payment fees if you cannot or forget to cover the minimum monthly repayment, an increase in interest and a negative impact on your credit score.

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

Here are some pros and cons to weigh up when thinking about a high limit credit card:

Advantages

• Gives you more spending power, allowing you to make more expensive one-off purchases or spend frequent higher amounts.

• Allows flexibility with your spending because you have credit to use at any given time and don’t have to worry about breaching a credit limit.

• You’ll get numerous perks such as travel insurance or cashback that are tailored for high net worth individuals.

Disadvantages

• High limit credit cards often come with a high annual fee.

• Interest rates (APRs) tend to be high and incentives such as 0% on purchases can be rarer.

• The credit limit may not be as high as hoped for once your financial situation is assessed.

• There is a higher temptation to borrow and overspend if you have a larger credit line.

Can you get a credit card with no credit limit?

There is no such thing as a credit card with no credit limit in the UK. However, occasionally cards may be issued with no specified spending capacity. 

There will still be a limit unique to the individual that’s based on factors such as creditworthiness, income, and how long you have had an account. But the credit limit could fluctuate as you demonstrate continued or increased creditworthiness.

Is a high limit credit card right for me?

There are benefits to having a high limit credit card, but it depends on your personal financial situation and your lifestyle as to whether it’s the right choice.

If you need the flexibility of being able to make large purchases on credit and you’re confident the perks of the card outweigh the fee, then they could be right for you.

However, you should also weigh it up against your financial habits and be confident you will repay the balance in full every month because these types of cards can become expensive (with high rates of interest) should you carry a balance long term. 

There are also penalties for missed payments, as there are with all types of credit cards.

Kara Gammell
Personal Finance & Insurance Expert

Our expert says

“A credit card with a high limit can allow for some serious spending and shows that the provider in question has faith that you’ll pay off the balance.

"However, these credit cards often come with higher annual fees, so weigh up whether the advantages of having a higher spending limit is really worth it.”

Other useful guides

• How to use a credit card to improve your credit score

• Can I make money from a cashback credit card?

• Can I buy a car with a credit card?

Compare credit cards with MoneySuperMarket

Finding the right credit card for you is easy with MoneySuperMarket. Just let us know a few details about your finances and we’ll search our range of leading providers and top card deals to find the most suitable credit cards for you. 

The ‘soft search’ we use means it won’t affect your credit rating in any way. But we can show you your chances of being accepted for different card deals and any credit cards that you might be pre-approved for so you can apply in confidence.

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this service. Instead we are usually paid a fee by the lenders, but the size of that payment doesn’t affect how we show products to customers.