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U R @: Education Center : Money Savers : Credit Limit Cut? Get a New Credit Card Fast
CREDIT LIMIT CUT? GET A NEW CREDIT CARD FAST
Since November of 2008, credit card companies have been slashing credit card limits dramatically. The pace and severity of credit limit cuts has intensified recently, and many consumers with good credit have seen their credit limits decreased dramatically.
Unfortunately, a credit limit cut not only reduces your available credit; it can also severely hurt your credit score as well. The reason credit limit decreases hurt credit scores lay in the fact that credit utilization, i.e. the amount of your available credit you use, plays a large role in determining credit scores. For example, a person with a $10,000 credit limit and a $4,000 balance is only using 40% of their available credit. This isn't great, but it also isn't a huge negative.
If, however, your credit limit is cut to $4,500, you'd be using 89% of your available credit. This will make you appear "maxed out," and can severely hurt your credit score. This, in turn, will make it more difficult to get a new credit card or a low rate home or auto loan.
Fortunately, consumers who act quickly can potentially avoid credit score decreases and actually save some money in the process. The solution is to get a new 0% credit card before your credit report is updated. Aside from providing you with additional credit, a 0% credit card can be used to transfer high rate balances, which can help you save hundreds on interest. Additionally, your new line of credit will reduce your overall credit utilization, which can help you prevent a dramatic credit limit decrease.
Below you can compare current 0% APR credit card offers and apply online for approval. Additionally, you can check your credit score (and reports) for free with any of the services listed in the free credit report section of this website.
DISCOVER® MORE (SM) CARD |
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- 0% Intro APR for 6 months on Purchases, and up to 6 months on Balance Transfers*
- No annual fee
- Customer Service in less than a minute, anytime you want
- 5% Cashback Bonus® in categories like travel, home, gas, restaurants, movies and more
- Up to 1% Cashback Bonus on all other purchases automatically
- Unlimited cash rewards
- Editor's Pick for best overall offer. Click more details below the card to find out why.
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Intro on Purchases
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Intro APR Period
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Regular APR
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Annual Fee
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Transfers |
Credit Needed
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0% *
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6 Months *
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As Low As 11.99% *
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None *
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Yes
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Good
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CITI® PLATINUM SELECT® CARD |
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- 0% APR* on balance transfers and purchases for 6 months
- No annual fee
- Citi® Identity Theft Solutions
- $0 Liability on unauthorized purchases
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Intro on Purchases
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Intro APR Period
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Regular APR
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Annual Fee
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Transfers |
Credit Needed
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0% *
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6 Months *
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As Low as 11.99%(V) *
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None *
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Yes
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Excellent
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AMERICAN DREAMCARD™ MASTERCARD® |
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- Best current credit card offer for consumers with fair or average credit
- Grace period for purchases of at least 20 days
- Editor's Note: This card may have NO annual fee or may come with a fee of $39 or $59, based on a review of your credit
- From the Issuer: The American DreamCard™ MasterCard® offers a generous credit line and no annual fee, so it costs you nothing to carry and has an award winning reward program. With every net $1.00 spent on your card, you receive an entry to win the large monthly American DreamCard™ cash jackpot. There is a new winner every month!
- †See terms and conditions for important rate, fee and other cost information, and limitations
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Intro on Purchases
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Intro APR Period
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Regular APR
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Annual Fee
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Transfers |
Credit Needed
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n/a *
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n/a *
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14.99/21.99% *
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$0, $39, $59 *
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Yes
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Average
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Compare Additional 0% APR Credit Card Offers and Apply Online
Get Your Credit Report and Scores for Free
**All information is presented as is and without warranty and should not be construed as financial advice. Information is presented for informational purposes only.
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