Have you ever had a letter through your door to say that your credit card company was ‘rewarding’ you with an increased credit limit? Although this news may make you feel excited at the thought of all the things you can buy, it’s crucial that you’re able to manage the extra debt responsibly.
After all, one in five people who are struggling with credit card debt say that their card provider raised their limit without their permission, according to a survey from Citizens Advice.
Those struggling with long term credit card debt were the most likely to have their limit increased, a move that runs the risk of plunging them further into debt.
With household expenses and other essential living costs rising much faster than the average wage, it can be far too tempting to make the most of all possible lines of available credit. So whether you’re struggling with your existing debt or you’re managing it well, it’s important to think about the implications of taking on more.
Here I’ve answered some of the most common questions when it comes to unsolicited credit card limit increases.
