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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
For more than two years, 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 90% 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 score section of this website.
CITI® PLATINUM SELECT® MASTERCARD® |
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- 0% Intro APR on balance transfers for 18 months and 0% Intro APR on purchases for 12 months. After that, the APR will be 11.99%-19.99% based upon your creditworthiness. This APR will vary with the market based on the Prime Rate*
- Extra Cash from Citi: enjoy discounts on gift cards,travel, merchandise and more
- Citi® Identity Theft Solutions
- Secure, free online account management
- No annual fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 12 Months*
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0% for 18 Months*
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11.99-19.99% Variable*
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None
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Good
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CITI® DIAMOND PREFERRED® REWARDS CARD |
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- $50 gift card - Redeem 6,000 bonus points after $300 in purchases within 3 months of account opening
- 0% Intro APR on Purchases and Balance Transfers for 12 months. After that, the APR will be 12.99%-20.99% based on creditworthiness*. This APR will vary with the market based on the Prime Rate.
- 5 ThankYou® Points for every $1 spent on purchases at supermarkets, drugstores and gas stations for 12 months, 1 ThankYou Point thereafter**
- Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more
- No annual fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 12 Months*
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0% for 12 Months*
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12.99%-20.99% Variable*
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None
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Good
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DISCOVER® MORE CARD |
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- 0% intro APR on balance transfers for a full 15 months, then the Regular APR
- 0% intro APR on purchases for a full 6 months, then the Regular APR
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
- Up to 1% unlimited Cashback Bonus on all other purchases
- No Annual Fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 6 Months*
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0% for 15 Months*
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11.99% - 20.99% (Variable)*
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None
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Good
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Compare Additional 0% APR Credit Card Offers and Apply Online
Get Your Credit 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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