I just recently came fairly close to maxing our my credit card – I came in just a few thousand shy of the limit. Now, before you kick me out of the personal finance bloggers club for backsliding, please keep the following in mind:
1. The expenses were anticipated. And they weren’t for anything fun, like a crazy vacation or a new car with all the bells and whistles.
2. I just paid off the bill. In full. From savings.Not doing anything crazy like using my line of credit to pay off my credit card.
Anyways, with my most recent bill I got a letter, and I found the wording in the later pretty darned funny. It said. “We are writing about your (credit card name here) Credit Card and are pleased to advise that, because you have effectively managed your account, we would like to offer you a credit limit increase.”
Basically – you just spent lots of money, so here – we’ll give you the means to spend more. And I decided to take them up on it – it never hurts to have a higher limit, as long as you know you won’t waste it, and you can pay it off.
But what I love the most was the way they put it “you have effectively managed your account”. It basically implies that the best and only way to use your credit card is to try and max it out! In fact, we have no idea why you haven’t done this before! Congratulations on joining the club!
There’s no real moral to this post- I just wanted to share my amusement with everyone.
Have you ever been asked if you want to raise your credit card limit? Do you remember the wording used in the offer?
Ha! That’s very interesting. I’ve never had them offer to increase my limit.
Michelle recently posted..Buying a NEW Car
You’re lucky you got a letter, my cc limit has been increased several times without me being informed. I check my accounts daily, that’s how I found out.
I’ve been asked if I want to raise my limit but I don’t really think using a credit card is a bad thing, if you pay it off. In fact, if you pay it off, it’s a smart financial move.
Daisy recently posted..How Fannie Mae HomePath Financing is Ruining the Housing Market!
When I moved to Canada the only cards I could get were PC and Sears both with $500 limits. I have declined requests to up the credit limit on these. I did however bump up my Canadian Tire Limit as it’s a card I use frequently. You are right though, the more you put on it, the more they will give you. It can be a negative or a positive for some. It didn’t bother me much as I needed to build credit in Canada.
Mr.CBB
Canadianbudgetbinder recently posted..Net Worth Update June 2012 Canadian Budget Binder-Review
It seems like they’re always trying to raise the limits on my credit cards. In the past I would gladly say yes to all those increases. The thing is I never ever use that extra credit. So essentially it is just extra perceived debt when I go to take out a car loan or mortgage. Lately when they ask I just decline.
Modest Money recently posted..Why I’m On The Fence About Using Coupons
This was so dangerous to me back when I was a 19 year old undergrad – I was great at paying my bills but also great at maxing out my card. Every 4-6 months, they would increase my credit limit, saying – “Congratulations! You have qualified for … ” It’s really very insidious how credit card companies condition people to spend more money.
CF recently posted..July garden update
Sadly yes. It was prior to my responsible days and I’d worked really hard to pay most of the card off. They noticed and doubled my credit limit. Which meant I spent alot more–and then they offered to extend it again. I wish I would have said no but in the future I know how to handle credit so shouldn’t be getting myself in a mess like I did.
bogofdebt recently posted..Student Loan Number 1
Almost every time I have to call my credit card company they offer to raise my limit but I always decline. My limits I think are high enough and I don’t like having the temptation of having access to $10,000 via credit card at my finger tips.
Mo’ Money Mo’ Houses recently posted..20 Random Things About Me: Let’s Get Personal
Michelle – guess you’re not maxing out your cards!
Call me – that’s strange – I didn’t know they were allowed to do that!
Daisy – good point. I have just redeemed a bunch of points to use on Costco gift cards!
Mr. CBB – yup, establishing credit can be hard. I was stuck with the 500 limit throughout school – probably a good thing though.
MM – Hmmm.hadn’t thought of that. Something to keep in mind as I may have to car shop soonish..
Bog – yup, that’s why they offer them, unfortunately..to encourage to spend more and more.
Mo – Yes, they are always offering something aren’t they? Higher limit, some kind of protection, etc. It’s hard just to get them to take care of whatever reason you called for!
CF – whoops. Missed you the first time through. And agreed – they just make it so easy to keep getting access to more credit!
I had one credit card increase my limit on its own—everything else had to be requested.
thethriftyspendthrift recently posted..The “Cheaper” Wedding – Part One
This doesn’t surprise me in the least. It is an old trick of the credit card companies to give people more credit than they originally asked for. Ultimately, those not as disciplined as you run into trouble. Kudos to you for having savings.
If you click on my name, it will take you to our website where my firm also runs a blog on finance related topics, especially those facing financial challenges.
Continued success.