The term high limit means that in one billing cycle, a credit card user can spend a substantial sum with the help of the credit card. It basically means that the credit card has a higher credit limit, than most of the other credit cards. The term no credit is basically a short-term for the concept of no credit report and rating.
Thus this credit card is particularly given to people who do not have their own credit report, such as youngsters or people who have not used any credit card or loans or debt facilities before. The high credit limit credit cards have been elaborated in depth in the following paragraphs.
It must be noted that these credit cards, are different from all high limit cards for bad credit and high limit credit cards for poor credit, as the poor and bad credit implies the fact that the credit report, score and even the credit history are bad. The no credit in contrast implies a consumer who has not yet started using credit cards, or not yet availed any loan and is free from debt. It must also be noted that the high limit credit cards are not bankruptcy credit cards.
About Credit Cards for No Credit
The credit cards for no credit are quite easy to get but maintaining them properly, by making systematic monthly payments to the credit card company, is not simple. There are some common features of the credit cards that are given for people who do not have a credit report.
One of the first feature that one will notice is that the total APR is low. It is customary among the credit cards companies to charge a floating APR, that is the Annual Percentage Rate, or interest will differ as per the nature of the transactions. The purchase of basic commodities is charged less, but the charge on luxury goods is quite high. The APR is depicted in figures such as 20% to 30%, floating rate, that is the APR that will be charged will be between 20% and 30%. Thus for no credit the APR range will be very short and low.
Secondly, there are also some credit card processing methods that use just one fixed rate of interest, such as a constant 10%. There are also some credit cards with no credit that do not charge any APR at all. They just charge an annual membership fees, the fees that cover up shipment of the card, and the credit card billing process. The drawback of such a card is that credit limit is not that high.
As a consumer signing up for a credit card with no credit, you will need to take a look at the signing up fees, underwriting fees, cash transfer charge, foreign transfer charge and lastly, the security deposit.
High Limit Credit Cards for No Credit
This type of high limit credit card can have two types of securities, the first is the cash security while the second one being the material credit, such as your car or jewelry, but most commonly, cash security is maintained as it is much easier. The cash in the account is equivalent to the credit limit, and maintaining the balance is compulsory.
The second thing that one must know is that, the late payment will result into credit score deductions and fines. The Credit Card Reform Act 2009 norms are applicable to these cards. On an average the APR for such cards will be about 15% give or take 5%. You can have a look at the quotations by American Express, Bank of America, Capital One, Chase, VISA, MasterCard, etc.
Before taking a high limit credit card, it is necessary to calculate the estimate of your monthly bill, as it will give an estimate of your expenditure on credit card bill.