Credit Card Increasing of limits........ (discussion)

I don't know how to feel.

I have two credit cards I use.. they both have VERY low limits (relatively speaking) I keep that way on purpose. That way if i buy something on impluse or need I can pay it off in about 4 months MAX. Its help me keep a better control on my spending. They call me and say 'we'd like to increase your limits' i say no thank you. It's the SAME people just two cards (one Gold, one Regular).

Now.. i have this other card that I lived off when I moved to NYC with no money, no job and no place to live...etc. I admit I took their offer for increase without blinking. Now Im still paying those buggers off. I don't USE that card anymore and I don't pay miniums I just hack away at the balance. It got moved to Chase and now the interest rate is higher so its a bit tougher.

Anyhoo.. I go online to check my Chase balance (its payday) and I saw my credit card balance has an extra $2,500 in credit. They have given me an increase.

Is this a good thing? (as in my credit has gotten better)

Or is this a bad thing? (I feel strange about having more that I *can* use!)

I try to be extra careful about my credit.

With the wedding around the corner, Jim thinks we should leave it alone (he laughs at how cautious I am about money).

We have a few trips before the wedding I have to take it would be a BIG relief to use the credit card instead of our wedding funds to pay for them.

All I think about is.. if you SPEND the money you owe more back. make sense?

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Posted by Xelindrya



Is this a good thing? (as in my credit has gotten better)

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No, it's not a good thing. What they are doing allowing you to create more debt, therefore they can make more money off of your increased interest.

Do you NEED the extra limit?

If you don't, then call them up, tell them to put it back and make them note on your account that BALANCES ARE NOT TO BE INCREASED WITHOUT YOUR PERMISSION.

Honestly, I know I am a spender, so I give the CC to DH.... I do the rest of the bills, but that is his domain.. I have no self control.

I do have to say we did not use the CCs (even with the increases) until after the wedding. Since we have been moving, it was so much easier to get furniture, bedding & all that stuff.....

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Posted by HearzBellz

I do have to say we did not use the CCs (even with the increases) until after the wedding. Since we have been moving, it was so much easier to get furniture, bedding & all that stuff.....

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Theres that too.

I just HATE putting anything on credit. I admit I screwed up in my past and learned the hard way. Now Im credit shy. I know you need to use credit to get good credit but I hate it.

I handle all of our bills. Jim is the spender heh. Me, I always think .. well the money I want to spend on '__item here__' I could save and then buy 'needed item here' later. So Wanted items are always pushed off for 'needed items' like car, apt, furnishing, wedding.

Heck.. I just gave Jim the bad news last night.. No new car until Feb 06! Im pretty tight about our budgetting. I try to live WITHIN our means.

heh

I always ask them to lower it if they arbitrarily increase my limits. What I have is sufficient and I have excellent credit.
If you have too much available credit out there it can also be looked upon negatively.

For example, if you apply for a loan and they see you have 5 credit cards each with 10,000 limits (even if you don't use them), they may say *if* you ever maxed them all out you won't be able to pay your loan.

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Posted by Kate

For example, if you apply for a loan and they see you have 5 credit cards each with 10,000 limits (even if you don't use them), they may say *if* you ever maxed them all out you won't be able to pay your loan.

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Good point.

I have to decrease my credit limits
i have 3 credit cards
one has a $12,000 limit and one has a $17,000 and one has a $8,000 limit...

who needs THAT much credit?

i have decreased mine as well as i use some cards for online purchases only...

however, to improve one's credit rating one needs to keep in mind the overall credit access to spending ratio. the lower the ratio, the better you look to the creditors...

i.e.

10K limit with 1K spending/month (paid off in full, of course)

looks better than

10K limit with a 6-8K balance not always paid off in full...