September 8, 2005
Raise your credit card limit
I was recently checking my American Express credit card statement online when I saw a link that said "Apply for a credit line increase." I clicked on it and got another page that said I was pre-approved for a credit line increase of $3,000, meaning that my new credit limit would be $6,000. What can I say, I went for it.Here are my reasons for going ahead with the credit limit raise:
- I pay off my credit charges at the end of each month, so…
- …my credit limit has nothing to do with how much I'll spend, but…
- …my credit limit has a lot to do with my credit score because…
- …I'm using a very low percentage of my available credit, so…
- …I'm seen as a good credit risk.
That's my reasoning, based on what little I know about the credit scoring model. As usual, only increase your credit limit if it's not going to get you into more financial trouble.
Filed under Credit, Credit Cards by Sean
Comments on Raise your credit card limit »
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