TheCatSite.com › Forums › General Forums › The Cat Lounge › Credit limit on a credit card
New Posts  All Forums:Forum Nav:

Credit limit on a credit card

post #1 of 14
Thread Starter 
I just received my credit card bill and there is a note at the end that says that since I am such a good customer, they have increased my credit limit by $1000. This is not the first time they have increased my credit limit without me asking or without even telling me beforehand. The first few increases I didn't mind because my original credit limit was low, but now it is getting excessive. I don't need such a high limit and I know it can work against me if I ever apply for a mortgage or another type of loan.

I tried calling them but couldn't get a human being on the phone They have a section where I was given the option of applying for a credit limit decrease but I wasn't sure if that was the best way to go. Will applying for a credit limit decrease hurt my credit rating?
post #2 of 14
I would not apply for a decrease. It can hurt you. I have high limits on my cards and our lender said it helped us get the loan for the House.
post #3 of 14
What matters more is that you make your payments on time, or better yet - keep the amount charged on that card very low. Using it and paying the balance off can help your credit.

DH has one card that's has a $9k limit. He's thought of canceling the card a few times over the years. Somehow they seem to know when he's considering it and always up the limit.
post #4 of 14
I have 2 cards with 10 k limits.
One is clear and the other I owe about 900 on.
The lender told us use them sometimes because it looks bad if you never use the.
Just charge a small amount.
post #5 of 14
Thread Starter 
I have only that credit card, and I always pay the full balance on time so I think my credit is very good. I was just wondering because I don't want my credit rating to go down even a little bit for something that is not my fault. Especially since it is illegal for the credit card company to do what they did.
post #6 of 14
Paying your full balance every month will hurt, not help, your credit score. At least occasionally, you should carry over a little balance to the next month. The scoring systems see this as "responsibly paying your bills."

Having big limits and not using them does not hurt your credit.
post #7 of 14
Just call then and sit and listen to all of their options. At the end there will be one allowing you to stay on the line to speak to a live person.

And tell them to put on your file to NOT increase your credit limit unless you specifically request it.
post #8 of 14
Quote:
Originally Posted by mrblanche View Post
Having big limits and not using them does not hurt your credit.
No, but it can be a temptation to use.
post #9 of 14
Quote:
Originally Posted by Natalie_ca View Post
No, but it can be a temptation to use.
Depends on the person. With how most of the people on this forum are that high limit card, if needed, would likely end up spent on emergency vet bills.
post #10 of 14
I disagree on having a high limit can help you.
When I worked in auto finance we would look at a potential customers credit report.
If there were credit cards we would total up the available credit and now that this potential customer could charge up to this amount and still have other loans and monthly fixed expenses in addition to a potential auto loan. That was not a good thing.

CC companies want you to charge more that is why they up the limits.
I would call the CC company or go online to see if they have better phone numbers and get a service rep to lower your limit to something you would feel more comfortable with.

If needed you can call them and have them increase it in the future.
post #11 of 14
Our bank raised our credit limit from our requested $2,000 to $3,000 one month. We left it that way because our mortgage lender told us it looks better to have a higher limit. We just watch what we put on the card, because I'd hate to have to pay $3k in a month for it! We only use it for emergencies or something we know we will have the cash by its due date to pay it off.
post #12 of 14
i had one card that got to $25,000 limit.
i cut it up and trossed it away. No matter what i said. They would not lower it.
post #13 of 14
I have only one credit card with a low limit of $400. It is a secured credit card that will force me to save the $500 I put up to secure it. Since I have horrible credit after my foreclosure, it will help to build up my credit. After one year of paying faithfully, they will remove it from being secured and possibly up my limit.

I have only used it to order something online and for the rental car while on vacation and maybe one or 2 other small items. I made a pmt on it before I even got the bill in the mail! It is through my credit union and as soon as it showed I had a pmt due, I paid the minimum for right now. I will pay more on it after I pay all my other bills.
post #14 of 14
Quote:
Originally Posted by GailC View Post
I disagree on having a high limit can help you.
When I worked in auto finance we would look at a potential customers credit report.
If there were credit cards we would total up the available credit and now that this potential customer could charge up to this amount and still have other loans and monthly fixed expenses in addition to a potential auto loan. That was not a good thing.
That's exactly what my personal banker (CIBC Bank in Canada) told me when we were renegotiating our mortgage several years ago and we had excellent credit. I had several credit cards for 3 or 4 department stores which I had not used for a long time and they all had a zero balance. She said the bank would add up the total of the limit on each card and consider that as a debt we owed because as far as the bank was concerned as soon as we got our mortgage approved we could go out the next day and run up every card to its limit, not that we would, but we could and that I should cancel every one of them. She told me we were better off to have only one charge card, a Visa or Amex and pay it in full every month.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: The Cat Lounge
TheCatSite.com › Forums › General Forums › The Cat Lounge › Credit limit on a credit card