The Costco Anywhere Visa® Card by Citi is available exclusively to Costco members. If you qualify, you can take advantage of the card’s many benefits, including 5% cash back when you fill up your tank at Costco and 4% cash back when you gas up or charge your electric car at other eligible gas stations (on a combined $7,000 spend per year, and then 1% thereafter).
If you’re approved for a card, your credit limit will be based on factors like your income, creditworthiness and recent credit applications. Here’s what you need to know.
Factors that may affect your credit limit
When you apply for the Costco Anywhere Visa®, in addition to having an active, paid Costco membership, you’ll also provide other information that helps determine eligibility and issue an appropriate credit limit if approved. Here are some factors that may impact your limit.
- Payment history: Payment history is an important part of your credit history and one that card issuers can use to determine your creditworthiness. A history of timely payments can signal that you’re a responsible borrower and may help you qualify for a higher credit limit.
- Credit utilization: Credit utilization reflects how much of your available credit you’re currently using. A lower credit utilization ratio may indicate to card issuers that you’re able to manage debt responsibly.
- Credit mix: Another factor in your credit score is credit mix or the combination of loans and revolving credit you’re managing. A broader credit mix may signal a greater ability to manage debt effectively.
- Income: Credit card issuers ask about income to verify that you’ll be able to repay the money you charge on a card. A higher income could help you obtain a higher credit limit.
- Recent credit card applications: Applying for too many credit cards at once can appear risky to lenders and may result in a lower credit limit if you’re approved.
- Current accounts: Credit card issuers may also review the number of credit cards you already have in and the total credit limit. If you already have access to a large amount of credit, whether at the same institution or others, a card issuer may use that information to determine your credit limit.
