Banks extending credit card limit? 6 reasons why you should you accept increase
Credit cards have nowadays become essential and convenient financial tool, offering flexibility while making purchases. At times when carrying cash is not only cumbersome but also comes with risks of theft, credit card becomes a saviour for expensive purchases.
4 reasons to accept increase in credit card limit
Credit card companies often offer to extend credit limit, allowing their customer’s to spend more. Listed below are 4 reasons why one should increase their card limit.
6 key factors to consider before accepting a credit card limit increase
1. Current financial situation, such as income, expenses and debts
2. Credit utilisation ratio and credit score
4. Future financial goals
5. Credit card interest rate and fees
2. Attracts penalty in case of late payment
3. Can cause financial difficulties due to debt burden
4. Push one into debt trap
