What does it mean when they raise your available credit?

[berlinlife06]

I have 4 cards that I use the most. Well, actually only one that I use, and I have on the other some balance. But on the ones I have a balance, they keep raising my credit limit. Does it mean that I have a good credit score? Do they trust me more? Do they want me to get into more debt?? What does it really mean?

[louisgodwin]

Originally Posted by berlinlife06

Does it mean that I have a good credit score? Do they trust me more? Do they want me to get into more debt?? What does it really mean?

Could be all of the above. Do they want you to ac***ulate more debt? This is a credit card company we're talking about, so the answer to that question is a big, fat undeniable YES.

[harmony_mom]

It doesn't necessarily mean that you have good credit, just that you have a decent record with that particular credit card. Of course they want you to spend more on the card, they're going to make more money that way. But a higher credit limit can help improve your credit score, so it's actually a good thing. However if you don't think you have to self control not to spend more because more is available, it may be a good idea to ask that they not increase your credit limit.

[berlinlife06]

The good thing is that I have a very good self control! And ALL except one of my cards, have in creased the limit... So I want to think that it helps to improve my credit record! Thanks.

[trickrtreat]

I think you are being rewarded for using the card and making payments on time. It also means that you will be into them for a lot more money.

[SageMother]

They are hoping to get into your pockets just a little deeper. On your credit report the available credit can work against you as potential debt, depending on who is looking at the report, and the reason they are looking.

[berlinlife06]

Originally Posted by SageMother

They are hoping to get into your pockets just a little deeper. On your credit report the available credit can work against you as potential debt, depending on who is looking at the report, and the reason they are looking.

How so?? I always thought if I had more credit available but only 20% in debt, for example, that would be a good thing... I don't need right now any more credit, but I wonder how would it work against me?

[SageMother]

Originally Posted by berlinlife06

Originally Posted by SageMother

They are hoping to get into your pockets just a little deeper. On your credit report the available credit can work against you as potential debt, depending on who is looking at the report, and the reason they are looking.

How so?? I always thought if I had more credit available but only 20% in debt, for example, that would be a good thing... I don't need right now any more credit, but I wonder how would it work against me?

It usually pops up when you want to buy a home. The housing market can be pretty fickle when it comes to potential debt because your mortgage is a long term commitment.

[berlinlife06]

Thank you so much! I never think of getting into a mortgage, since my apartment is paid off. And I don't have any plans of getting into buying a house any time soon.

[trickrtreat]

I hadn't thought of that. Thanks for pointing it out, Sagemother. I am glad that someone would actually look at that, though, before they have you jeopordize yourself with a purchase you couldn't afford.