My Credit Line Got…Increased?
by debt kid on May 15, 2009
So, with credit lines going down all over the country, I felt pretty special yesterday when I received a postcard in the mail.
One of my two credit rebuilder cards sent me a nice note saying that since I “had been paying on time every month” that they were increasing my credit limit.
A whole $50.
Wohoo!
I’m ballin’ now…
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{ 9 comments… read them below or add one }
Some of the “credit rebuilder” cards charge you a “credit limit increase fee”. I hope yours isn’t one of these. That’s why they would usually want to increase your credit limit by $50 — so that they can charge you the $29 (or whatever) credit limit increase fee.
I recently called up my CC company and had them raise my credit line. I don’t need it to be raised, but having it raised helps your FICO score. I would recommend you trying this out especially since you pay in full every month. Just tell them you have some upcoming expenses and would like to increase your line. Takes minutes.
@ Rick – No charge. I’m thinking of putting a few thousand in a secured credit card though to get a decent limit that will report on my score.
Is there a credit crunch? I too had had an increase on one of my CC but I don’t really want it – I have also be reappoved for a loan – it’s that nice! but I don’t want it either. Must be my credit rating is so good now they all want me back in debt!
I always ask my credit cards to cease increasing the credit limit when they get to about 8K. I would never spend that much in a single month, and I’ve heard somewhere that higher credit limits put you at greater risk for identity theft. Does anyone know if that is true?
Sorry, but I have to call you out on this. I see a lot of debt-addict type thinking here, with the obsession with credit limits and FICO scores. Your credit days are behind you for a while. Just face it. You are so much better off not being a slave to the banks like you are right now. You are buying your freedom right now. Have a birthday party when you become debt free.
i would return the postcard back to sender with the note: “NO THANKS.”
To speak to the lowering credit available, I have had a particularly annoying experience lately. My cards were not maxed, but I was in need to pay down debts. I was making great headway on paying off debts, then this mess all hit. They started slashing my available credit like it was the cool thing to do, and have it set up to automatically drop my limit to the next highest $100 mark every time I make a payment. Not that I am interested in keeping insanely high credit limits, but here is how it gets annoying.
They cut my limit, then charge my finance fee, which puts me over my limit, then charge me for being over the limit. I was $10k under my limit before they started slashing the available credit and now I have had to pay over limit fees twice because they give me a razor thin margin to work with. Pay too much and my credit limit gets lowered, and if there is not enough room on the card for the finance charge I am screwed.
It’s happening everywhere, these companies are desperate now they have lost so many risky customers.