One of the easiest ways to rack up points and miles is by getting cards with big sign up bonuses. Recall, if the only way to get a card, that you want, is by asking for a small credit limit, then take the small credit limit. It is a means to an end. However, generally, higher credit limits on your existing cards are more helpful if you want to play the game. Here are two reasons why
1. High credit limits makes it easier to reallocate credit to secure big bonus cards
This has worked for Rob and I a number of times with Chase. I have yet to try it with another bank.
For me it has worked with applications for my Chase Marriott Rewards Premier card, and my Chase IHG Rewards Club Select Credit Card For Rob, it has worked with applications for his Chase Marriott Rewards Premier card too. and his Chase United MileagePlus Explorer Visa.
Don’t forget, Chase has no reason not to do this. Chase is not extending you any additional credit, and you are at least going to use the new card to spend at least the minimum spend requirement. The two numbers, that I am aware of, to call to reallocate your Chase credit are 888-609-7805 and 888-270-2127.
But in order for this plan to work, you must have a decent amount of credit on your existing card to play with. I usually take credit from my Chase Sapphire Preferred card and from my Chase Freedom card to reallocate to the new cards. On both of those cards I have a sizable credit limit.
So it follows that having big credit limits can be helpful in playing the point/miles game in that you have more credit to reallocate to secure big bonus cards.
2. High credit limits can help your credit score, and higher scores lead to higher application approval rates
The more debt you have as compared to your credit line, the more of a negative effect there is on your credit score. Experts recommend that the amount owed should not exceed 30 percent of your credit limits. This debt to available credit ratio is called your utilization ratio. So higher credit limits lead to lower utilization ratios and thus higher scores.
Sometimes banks on their own may increase your credit limit if you have shown a pattern of good behavior over a certain period of time. You can also call the bank and ask for a credit increase. Overall, a lot of credit can be a good thing in the points and miles game!