Author Topic: Credit card limit increase: accept or not?  (Read 1069 times)

beee

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Credit card limit increase: accept or not?
« on: December 08, 2017, 05:02:31 PM »
My bank has been offering to increase the limit on my credit card for several years.
I always ignore it, because $10k limit is enough for me, and a pretty round number :)

But maybe I don't understand something and should accept it?

What do you think?

Bracken_Joy

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Re: Credit card limit increase: accept or not?
« Reply #1 on: December 08, 2017, 05:52:58 PM »
I mean... why not? It'll lower the % utilization of your credit, which may raise your credit score. If you're not carrying a balance, and not the type to spend up to a balance, there's literally no downside to accepting credit line increases.

Sibley

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Re: Credit card limit increase: accept or not?
« Reply #2 on: December 10, 2017, 09:21:32 PM »
You have an option to accept or decline? Lucky! I just get a letter with "congrats, we raised your limit!" and then have to call and tell them to lower it.

As long as your total available isn't getting obscene, you're probably fine.

Johnez

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Re: Credit card limit increase: accept or not?
« Reply #3 on: December 10, 2017, 09:43:49 PM »
Depends.  If you keep your balance at zero (which you should) it doesn't matter at all.  If you run a small balance (some people do), the percentage of debt to available credit is lowered and will eventually improve your credit score.  If you run a very large balance, this will only tempt you to spend more, in which case of course the answer is hell no don't raise that limit.

frugaliknowit

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Re: Credit card limit increase: accept or not?
« Reply #4 on: December 11, 2017, 01:49:45 PM »
If credit score is important to you, having a higher limit will help your utilization lower, potentially giving you a higher credit score than at your current card limit.

Personally, I won't exert any effort to increase my credit limit; if they raise me, fine, if they don't, I don't give a rats axx...

BlueMR2

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Re: Credit card limit increase: accept or not?
« Reply #5 on: December 11, 2017, 04:11:27 PM »
Same here, mine just gets raised and I'm notified.  I don't have an actual decision to make.  I can't imagine any logical justification for actively working to have it decreased but I wouldn't exert any effort to have it be raised either.  If I have to do something to "accept", I'm just too lazy...

Meesh

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Re: Credit card limit increase: accept or not?
« Reply #6 on: December 11, 2017, 05:07:04 PM »
If you don't have problems with credit and always pay it off (key point), then I'd accept it. It will raise your credit score by having more available credit and a smaller percentage balance as already mentioned.