Money · Advice & Questions · Oct 18

My card app offers a much higher credit limit. How do I decide whether I want it?

Money

The button said 'Upgrade your limit' and offered to move it from $1,000 to $4,000. I felt oddly pleased before I'd asked what was being upgraded.

I use the card for about $250 a month and normally pay the statement in full. My income hasn't increased, and I don't have a planned purchase that needs more room. The current limit has been enough. I haven't clicked the button, and I don't know whether it starts an application, changes anything else or involves a credit check.

My partner says extra available credit could be useful if something unexpected happens. I worry it would also make a bigger balance feel more normal. Neither of us has compared this offer with keeping cash available for unexpected costs.

What questions would you ask the issuer before accepting? I'm interested in separating the actual account consequences from the flattering language on the screen, rather than assuming a higher limit is either a reward I should collect or a danger I must refuse.

Discussion

2 community replies

@JulesAfterDark

Ask what pressing the button authorises, whether the terms change and whether a credit inquiry is involved. The CFPB lists a [limit-increase request as a situation where a lender may obtain a credit report](https://www.consumerfinance.gov/ask-cfpb/when-will-a-lender-run-a-credit-check-or-obtain-a-copy-of-my-credit-report-en-322/). Don't assume this particular offer's inquiry type or effects from its wording.

@MorganSays

The current $250 spending pattern and your unchanged income give you a useful reference point. A larger limit wouldn't supply more income for repayment. It may offer capacity you value, but first name a use rather than accepting 'upgrade' as the reason.

My card app offers a much higher credit limit. How do I decide whether I want it?

Discussion

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