Credit card is offering to raise limit

Credit Cards
1

Are there situations where you wouldn’t or shouldn’t get a higher credit limit on your credit card?

My daughter’s oldest credit card is offering to raise her limit from $2500 to $5000. She recently got a 2nd credit card with $5000 limit. She travels quite a bit, has to front the money, and wait to get reimbursed. She always pays the bills ahead of the deadline and has great credit. I can’t think of any reason to not get the higher limit.

2

I cannot think of a reason to decline it. It will help her credit score every month by decreasing her usage ratio (assuming her spending level remains the same).

2 Likes
3

Assuming the travel is for her employer, this isn’t good. I hope she’s confident her company will reimburse her in a timely fashion. I’ve heard stories where companies have gone out of business and left their employees with unreimbursed travel expenses.

4

I don’t know if this is valid, but I kept my credit limits lower because of possible theft. So when I was offered large credit increases, I declined them. But that’s me…

1 Like
5

I have a lower credit limit on my one card, for that exact reason, and I also don’t use the card much except for automatic payments

1 Like
6

For someone who uses credit responsibly, the advantages of a higher credit score outweigh the possible disadvantage that have been mentioned in the comments. Credit scores can also be a factor in some housing, insurance and employment decisions.

1 Like
7
  • Regulations state that an individual is limited to just $50 in the event of credit card fraud, but the theft must be reported and the correct steps undertaken.
    Who Is Liable for Credit Card Fraud?
1 Like
9

Thanks for all the replies. Looks like raising the limit will be good for her.

We haven’t had to pay any money when we’ve found fraudulent purchases on our cards (twice). Maybe because we still had the card, and it was never lost or stolen?