Are there any disadvantages on increased credit limit?

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Deal Subedar
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Credit card company keeps offering me increased credit limit. I have not been opting for it as I don’t need to spend that much in any month.
But I was wondering if I opt for it, are there any disadvantages?
Or any other advantages other than increased limit to spend.

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disadvantages? If a fraud happens greater liability
advantages? More limit ==> future needs covered; will help in getting premium cards like diners..etc
Limit enhancement is a slow process and can not be done overnight so accept the offers.

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caks2006407 wrote:

disadvantages? If a fraud happens greater liability
advantages? More limit ==> future needs covered; will help in getting premium cards like diners..etc
Limit enhancement is a slow process and can not be done overnight so accept the offers.

Thanks.
Are there any implications on credit score (CIBIL etc) due to higher credit limits?

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ontherocks wrote:

Thanks.
Are there any implications on credit score (CIBIL etc) due to higher credit limits?

No.. no effect on your credit score

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indiansoul wrote:

No.. no effect on your credit score

Thanks.
And I can always reduce the credit limit in future if I want (fear of fraud)…isn’t it?

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ontherocks wrote:

Thanks.
And I can always reduce the credit limit in future if I want (fear of fraud)…isn’t it?

Yes, you can contact support for reducing limit… Many bank’s offer option for setting up limits on card usage  .. you can use that option too to reduce your usage limits..

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ontherocks wrote:

Thanks.
Are there any implications on credit score (CIBIL etc) due to higher credit limits?

If you increase your credit limit & your utilization remains same, then your utilization percentage decreases & it will gradually improve your credit score. In short, low utilization % is a sign that you are not credit hungry.

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No negative impact on credit score but as @On-n-Off said, it may improve your credit score.

Also, get the limit enhanced while your bank is offering it. They will never going to increase the limit if you ask for it in future when you really want it.

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Not sure if it helps anyone…..still posting

SMS LIMIT to 5676788 ==> Kotak CC
SMS CLI to 575750 ==> HSBC CC
SMS CLIYES to 9987123123 ==> Standard Chartered CC
SMS LE to 5676712 ==> HDFC CC

All SMS should be sent from your registered mobile number.

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caks2006407 wrote:

disadvantages? If a fraud happens greater liability
advantages? More limit ==> future needs covered; will help in getting premium cards like diners..etc
Limit enhancement is a slow process and can not be done overnight so accept the offers.

if they offer a feature to control the card limit as per your choice ,then go for it

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ontherocks wrote:

Thanks @On-n-Off and @Roushh
Opted to increase the limit for a couple of cards.

https://economictimes.indiatimes.com/wealth/per...

Card issuers have also been asked to allow card holders to modify transaction limits within the overall card limit for all types of transactions -domestic and international at PoS, ATMs, online transactions and contactless transactions.

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