5 Best Cards with a High Limit in Canada

Canada offers a vast selection of credit cards to its consumers, each tailored to meet their diverse financial needs and preferences. For those who have built a solid credit history and seek to unlock a realm of financial flexibility, high-limit credit cards are the way forward. These cards offer generous credit lines, enabling cardholders to make significant purchases, travel in luxury, and access exclusive privileges.

A high-limit credit card is a credit card that offers a higher credit limit than a standard credit card. While there is no exact definition of what constitutes a high-limit credit card, limits typically start at $5,000 and can go up to $100,000 or more.

High-limit credit cards can be a good option for people with excellent credit scores who need a higher credit limit for large purchases or debt consolidation. However, it’s important to weigh the pros and cons before applying for a high-limit credit card. If you’re considering applying for a high-limit credit card, be sure to compare different offers and choose a card that fits your needs and spending habits. 

Benefits of having a high-limit credit card

Increased purchasing power 

A higher credit limit gives you more buying power, which can be helpful for making large purchases or consolidating debt.

Lower credit utilization ratio

Your credit utilization ratio is the percentage of your available credit that you’re using. A lower credit utilization ratio is generally considered to be better for your credit score. A high-limit credit card can help you lower your credit utilization ratio by giving you a larger pool of available credit.

Improved credit score

A higher credit limit can help improve your credit score by lowering your credit utilization ratio. It can also show lenders that you’re responsible with credit and that you’re able to manage a large amount of debt.

More flexible payment options

Some high-limit credit cards offer more flexible payment options, such as the ability to make multiple payments each month or to defer payments for a period of time. This can be helpful if you need more time to pay off a large purchase.

Access to exclusive benefits

Some high-limit credit cards offer exclusive benefits, such as travel insurance, purchase protection, and extended warranties. These benefits can save you money and protect you from financial loss.

It’s important to note that having a high-limit credit card also comes with some risks. If you’re not disciplined with your spending, it’s easy to rack up debt on a high-limit credit card. This can lead to high interest charges and damage to your credit score.                                                                                             

5 best high-limit credit cards in Canada

1. American Express Cobalt Card

Annual fee: $155.88 ($12.99 monthly)

Rewards: 5x points on eligible eats and drinks worldwide, 3x points on streaming subscriptions, 2x points on groceries and transit in Canada, and 1 point per dollar on all other eligible purchases.

APR: 20.99% on purchases, 21.99% on cash advances

Other benefits:

• American Express Experiences
• No foreign transaction fees
• Complimentary travel insurance
• Purchase protection

2. TD Aeroplan Visa Infinite Privilege Card

Annual fee: $499

Welcome offer: earn $20,000 Aeroplan points when you make your first purchase with your new card

Rewards:

2 points per dollar spent on eligible purchases made directly with Air Canada

1.5 Aeroplan points per dollar spent on eligible dining and food delivery purchases in Canada

1.25 Aeroplan points per dollar spent on all other eligible purchases

APR: 20.99% on purchases, 20.99% on cash advances

Other benefits:

• Priority check-in, boarding, and free first checked bag on Air Canada flights
• Share free first checked bags with up to 8 travel companions
• NEXUS enrollment fee rebate every 4 years
• Comprehensive travel insurance

3. Scotiabank Platinum American Express Card

Annual fee: $399

Rewards: 2 Scene+ points per dollar spent on all eligible purchases

APR: 9.99% on purchases and cash advances.

Other benefits:

• No foreign transaction fees
• Access to American Express Invites
• Complimentary Priority Pass Select membership
• Travel insurance

This card is a good option for consumers who want a high-limit credit card with a generous welcome offer and no foreign transaction fees.                                                    

4. MBNA Rewards World Elite Mastercard

Annual fee: $120

APR: 20.99% on purchases, 20.99% on cash advances

Other benefits:

• No foreign transaction fees
• Complimentary travel insurance
• Purchase protection

This card is a good option for consumers who want a high-limit credit card with a generous welcome offer and rewards on a variety of spending categories.

5: RBC Avion Visa Infinite Privilege Card

Annual fee: $399

Rewards:

• 1.25 Avion points for every $1 you spend

APR: 20.99% on purchases, 22.99% on cash advances

Other benefits:

• Complimentary lounge access
• Purchase protection
• Travel insurance

How to qualify for a high-limit credit card

Given below are variety of factors when setting credit limits:

Credit score

Your credit score is one of the most important factors that lenders consider when setting credit limits. A higher credit score indicates that you’re a good credit risk and that you’re likely to repay your debts on time.

Credit history

 Lenders also look at your credit history to see how long you’ve been using credit and how you’ve managed your credit accounts in the past. A longer credit history with a good track record of on-time payments and low credit utilization will make you a more attractive borrower to lenders.

Income

Lenders also want to make sure that you can afford to repay the debt that you’re taking on. They’ll consider your income and debt-to-income ratio when setting your credit limit.

Employment status

Lenders are more likely to approve borrowers who are employed and have a steady income.

Get a secured credit card

 If you have a limited credit history or bad credit, you may be able to qualify for a secured credit card. Secured credit cards require a deposit, which acts as your credit limit. As you make on-time payments, your credit limit may increase and you may eventually be able to qualify for an unsecured credit card with a higher credit limit.

How to choose the best high-limit credit card for your needs

When choosing the best high-limit credit card for your needs, there are a few factors you should consider:

Your credit score and credit history

Lenders will typically set higher credit limits for borrowers with good or excellent credit scores and a long history of on-time payments.

Your income and debt-to-income ratio

Lenders also want to make sure that you can afford to repay the debt that you’re taking on, so they’ll consider your income and debt-to-income ratio when setting your credit limit.

Your spending habits

 Think about what you spend money on most often and look for a card that offers rewards or benefits in those categories. For example, if you travel frequently, you may want to consider a travel rewards card. If you dine out often, you may want to consider a dining rewards card.

The annual fee

Some high-limit credit cards have high annual fees, so be sure to factor that into your decision. However, many high-limit credit cards also offer valuable rewards and benefits that can offset the annual fee.

The interest rate

If you’re not able to pay your bill in full each month, be sure to compare interest rates on different cards.

Once you’ve considered these factors, you can start comparing different high-limit credit cards. Here are a few things to look for:

Welcome bonus

Many high-limit credit cards offer a welcome bonus, such as points or miles, after you spend a certain amount of money in the first few months of opening your account.

Rewards program

Look for a card with a rewards program that aligns with your spending habits. For example, if you travel frequently, you’ll want to consider a travel rewards card. If you dine out often, you’ll want to consider a dining rewards card.

Other benefits

Some high-limit credit cards also offer other benefits, such as travel insurance, purchase protection, and extended warranties.

It’s also important to read the fine print carefully before you apply for any high-limit credit card. Make sure you understand the terms and conditions of the card, including the annual fee, interest rate, and rewards program.

Here are some common mistakes to avoid when using high-limit credit cards:

Overspending: It’s easy to overspend when you have a high credit limit. Be sure to set a budget and stick to it. Don’t use your credit card to finance unnecessary purchases.

Not paying your bill in full each month: If you don’t pay your bill in full each month, you’ll be charged interest. Interest rates on credit cards can be high, so it’s important to pay your bill in full each month to avoid paying unnecessary interest.

Maxing out your credit limit: Maxing out your credit limit can damage your credit score. Try to keep your credit utilization ratio below 30%.

Not understanding the terms and conditions of your card: Before you sign up for a high-limit credit card, be sure to read the terms and conditions carefully. Make sure you understand the annual fee, interest rate, and rewards program.

Applying for too many credit cards at once: Applying for too many credit cards at once can damage your credit score. Hard inquiries, which are made when you apply for a new credit card, can stay on your credit report for up to two years.      

In conclusion, the quest for the best high-limit credit card in Canada can be a daunting one, but it is worth it for the rewards of greater financial flexibility and purchasing power. By considering the five top options outlined in this article, as well as your individual needs and preferences, you can make an informed decision that will help you achieve your financial goals.

Whether you are looking for the premium benefits of a luxury card, the rewards offered by a cashback or travel card, or the simplicity of a low-fee option, the Canadian market has something to offer everyone. When making your decision, be sure to consider your credit score, spending habits, and long-term financial goals. By selecting the right high-limit credit card for you, you can enhance your financial well-being and access the financial resources you need to live your best life.