Bank/CC credit limit question

Discussion in 'The Club House' started by Poink88, Jun 26, 2011.

  1. Poink88

    Poink88 New Member

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    I just noticed today that my credit limit was raised by my bank by 50% w/o notifying me. Is this normal? :confused:

    I intentionally requested the lower limit and have been paying off my monthly balance for years now so I am not paying any interest. I am actually collecting cash back from them $34.26 monthly (actual average). I am wondering if this is a "trap" :rolleyes: for me to spend more than I can actually pay.
     
  2. Car54

    Car54 New Member

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    Yes and no. The banks see you are paying your bills regularly and as a "reward" they increase your card limit. It's not a direct ploy to get you spend more but it's there in case you do.

    You can call the bank and have them return to the limit is was if you want.
     

  3. JonM

    JonM Moderator

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    its normal sop. they dont want you to go over limit but they DO want you to make ongoing payments for the massive interest charge. the bigger the limit the more liekly someone is to use it and start making that monthly payment instead of paying it off each month. they take a guess based on your credit score what you can afford and raise limits accordingly as a "reward"

    i like a 500-1000$ limit on my one CC if they increase it i past 1000$ i call and complain. if they dont lock it down i cancel the card and get a new one. but my personal credit and assets are good enough that i really dont care if i get a small ding for lowering a limit.
     
    Last edited: Jun 26, 2011
  4. LONGHAIR

    LONGHAIR New Member

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    I just got done paying off $8,7xx.xx in credit cards...at $138.25 a month for 3 years and 10 months....thought a company called clearpoint...they get the interest down to 0....F#CK Those credit cards...I have one and one home-depot...that's all I'll ever have again.......
     
  5. Poink88

    Poink88 New Member

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    Longhair, I won't defend the CC company but likewise, I won't blame them for whomever they "victimized". We should be responsible for our purchases and at one point in my life, I bit the bullet and used them to stay alive...it is not pretty but they served the purpose and I am glad I had that option.
     
  6. LONGHAIR

    LONGHAIR New Member

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    I think you have to have a cc to rent a car or sometimes to get a hotel room....There's something else you have to have on for but I can't think of it...???.......:confused:
     
  7. freefall

    freefall New Member

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    The main reason I use a credit card is to pay at the pump.
     
  8. gregs887

    gregs887 New Member

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    If they gave it to you take it. Nobody is saying you have to use it.
     
  9. Gordo323

    Gordo323 New Member

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    Just the banks subtle way of saying......................buy more guns! :D
     
  10. winds-of-change

    winds-of-change The Balota's Staff Member

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    There was a point in my life where I had to live off credit cards, too. It was terrible.

    I don't have a credit card but I do have a VISA bank debit card that I can use just the same as a credit card. I have used it to reserve a hotel room. The only difference is you have to have the money in your bank account to cover the purchase. I've been without a credit card for several years now and have used my debit card in place of a credit card.
     
  11. Jay

    Jay New Member

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    We have three credit cards...

    1. substantial credit limit, for surprise, needed, purchases (appliance failure for example

    2. low limit card ($500) for internet orders

    3. Gas only card for a 5% rebate on all gas purchases.... we average 1 or 2 $25 gift cards for gas sent to us each month.

    None of the cards is ever allowed to carry a balance over to the next month.
     
  12. Car54

    Car54 New Member

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    I fly quite a bit so I have an airline based credit card. Everything I buy goes on the card and I pay it off in full each month. Me and my family have had many flights free or greatly reduced fares because of it. You have to be vigilant in paying it off each month or the interest will start adding up.