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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® CARD - BEST CREDIT CARD COMPANY |
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- 0% APR on Balance Transfers for a FULL 12 months
- 0% APR on Purchases for a FULL 6 months
- Editor's Note: Discover is our top pick amongst credit card companies because they have proven to be the most customer friendly credit card company during the past two years. Unlike most major credit card companies, Discover did not dramatically raise interest rates on their customers in 2009 and generated virtually no negative feedback in the past year.
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and more
- Up to 1% unlimited Cashback Bonus on all other purchases automatically
- Turn your Cashback Bonus into bigger rewards by redeeming for gift cards from over 100 brand-name Partners
- Instant Response within 60 seconds
- No Annual Fee
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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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Credit Needed
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0% *
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12 Months *
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As Low As 11.99% Variable *
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None *
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Excellent
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CITI® PLATINUM SELECT® CARD |
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- 0% APR* on balance transfers and purchases for up to 12 months
- Editor's Tip: See application for complete terms and conditions on 0% rates
- No annual fee
- Citi® Identity Theft Solutions
- $0 Liability on unauthorized purchases
- Secure, free online account management
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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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Credit Needed
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0% *
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up to 12 Months *
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As Low as 11.99% Variable *
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None *
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Good
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AMERICAN DREAMCARD™ MASTERCARD® |
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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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Credit Needed
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N/A
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N/A
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14.99% or 21.99% Variable *
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$0- $59* *
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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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