It’s best not to rack up much debt that you keep on your credit card(s), but if you think you will do so now and then, take the credit limit of any card you’re considering into account. This is particularly important if you’re shopping for a balance-transfer card.
If so, find out what your credit limit will be with the card. You won’t be able to transfer more than that limit (less the balance transfer fee, if there is one), and if you exceed the limit, you might face a fee. If you want to transfer $10,000 of debt, for example, and the card limits you to $7,000, that’s good to know and might influence your decision.
Note, too, that your credit limit has an effect on your credit score, as credit score algorithms assess how much you owe versus how much you could owe (i.e. your total credit limits) and favor lower ratios. So if you’re deliberating between a card with a $3,000 credit limit and a $5,000 one, know that the latter might beef up your credit score a little.
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