The Wells Fargo Active Cash Card is a straightforward cash back rewards credit card with no annual fee. Your exact “good” credit line depends on your financial situation and spending habits.
Benefits of Wells Fargo Active Cash Card
Some key features and benefits to be aware of include:
1. Earning Cash Back
- Earn 2% cash rewards on purchases.
- Earn cash rewards on qualifying purchases, minus returns and other credits.
- No caps or limits on the amount of cash rewards you can earn.
2. Redeeming Rewards
- Cash rewards can be redeemed for cash back.
- Redeem for statement credits, direct deposit into a Wells Fargo checking or savings account, paper checks, and more.
- No minimum redemption amount.
3. Other Benefits
- 0% intro APR on purchases and qualifying balance transfers for 15 months from account opening.
- Cell phone protection provides coverage for damaged or stolen phones listed on your monthly cell phone bill when you pay it with this card.
4. Credit Needed for Approval
- Good to excellent credit is recommended for approval odds.
- Check your credit report and FICO score first. Income is also a factor.
- If declined, try again after 6 months of building credit history.
With no annual fee and an easy-to-understand rewards structure, the Wells Fargo Active Cash Card can be a good option to earn unlimited 2% cash back on purchases if you’re looking for a straightforward cash back card. Check your approval odds first and make sure to pay your statement balance in full each month.
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What Factors Determine Your Credit Limit?
Here are some of the factors that determines your credit limits:
1. Credit Score
Your FICO credit score plays a major role. The higher your score (generally 670 and above), the more likely you’ll be approved for a higher credit limit. With good credit (scores of 670+), you may get approved for $5,000 or more.
2. Income
Your income helps lenders gauge your ability to manage debt responsibly. Providing verifiable income on your application often leads to higher approved limits. High incomes may lead to credit limits of $10,000+.
3. Existing Credit
If you already have credit cards with high limits and manage them well by keeping balances low, Wells Fargo may approve you for a proportionately high limit on the Active Cash Card.
4. Debt-to-Income Ratio
This measures how much debt you have compared to your income. The lower your DTI ratio, the better. Having a lot of debt can restrict your approval chances and lower your credit limit.
Check your credit report beforehand to understand where you stand across these areas. Consider paying down balances if your debt load is high going into your application. Managing credit wisely over time can help you qualify for better offers.
How to Increase Your Credit Limit
Here are some tips to help increase your chances of getting a higher credit limit:
1. Improve your credit score
The higher your score, the more likely you’ll qualify for a higher limit. Pay all bills on time, pay down balances, and limit new credit applications to boost your score over time. Aim for at least a score in the good to excellent range (670+).
2. Ask for credit limit increases
Every 6-12 months, request a higher limit. Wells Fargo may do a soft pull on your credit, which won’t hurt your score. Increased limits shows you’re able to handle more available credit responsibly.
3. Make payments on time
A strong payment history proves to lenders you use credit conscientiously. Set up autopay so you never miss a payment. One late fee can reduce your chances of a CLI.
4. Use less of your available credit
Keep balances low compared to limits. High utilization signals risk, while low usage (under 30%) conveys responsibility. Pay down cards in full each month when possible.
5. Build your relationship with Wells Fargo
Having savings, checking or investment accounts may help your credit limit case by showing existing assets and financial ties. Consolidate balances from other banks to demonstrate loyalty.
Be patient and persistent for the best results over time. Check for pre-qualified offers in your account as well. Building good credit pays off when you need it!
What Is Considered a Good Credit Limit?
This is a fair question since the amount of credit extended impacts your utilization ratio and credit scores.
- For most people, a credit limit between $5,000 to $10,000 is solid for this type of card. This gives you enough flexibility to make larger purchases without maxing out the card.
- A credit line below $1,000 is often too restrictive for regular spending and bills. It’s tricky keeping the balance low to avoid high utilization.
- A credit limit over $25,000 may seem nice, but isn’t necessary for daily use. Plus it represents more risk for the bank.
Check your credit report to see your full history, open accounts, incomes reported and debts owed.
This gives you an idea of what factors decide your limits. If you feel your limit is too low or high, you can request an increase or decrease.
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The key is using your Wells Fargo Active Cash Card responsibly by keeping balances low and paying on time each month. Doing so will organically increase your limit over time through routine credit line reviews.
Frequently Asked Questions About the Active Cash Card Credit Limit
Here are answers to some common questions about the card’s credit limit:
1. How is my credit limit determined?
Wells Fargo will conduct a credit check and review factors like your income, existing debts, payment history, credit score, and past use of credit. This helps them extend a credit limit tailored to your financial situation.
2. What credit score do I need to qualify?
You’ll typically need good to excellent credit a FICO score of 690 or higher to qualify for the Active Cash Card. The higher your score, the more likely you’ll be approved for a higher initial credit limit.
3. Can I request a credit limit increase?
Yes. After making five months of on-time minimum payments, you can contact Wells Fargo to request a higher credit limit. This requires another credit check. Limit increases may boost your credit utilization ratio.
4. How much can the credit limit grow over time?
With responsible use such as making timely payments, your credit limit may periodically increase without needing to request it. The potential maximum depends on your financial profile, but could reach into five figures.
5. What if I’m not approved for the minimum $3,000 limit?
Wells Fargo may approve you for less than $3,000 based on your qualifications. This gives you a chance to build credit with the card before requesting higher limits later.
Carefully managing the Wells Fargo Active Cash Card credit limit can help strengthen your borrowing power and financial foundation over time.