Is it worth increasing the limit of credit cards?

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Deal Cadet
S.Thawait
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Earlier when I used to get a Credit limit increase offer, I promptly increased the limit almost every time with full value.

As again I got the same offer in ICICI and Axis , I would like to ask everyone's opinion about any cons/drawbacks of doing the same.

Do they calculate the total worth of an individual and increasing the limit every time would eventually result in the cancellation of the application for new cards?

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Deal Lieutenant Deal Lieutenant
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...bigger limit...bigger the accident waiting to happen..

Deal Cadet Deal Cadet
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We can limit it by setting the spend limit I guess.

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Deal Cadet Deal Cadet
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No. If you have more limit on existing, it will become easy to get new cards via card to card basis

Tech Guru Tech Guru
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Paper tiger. 🙂 Pretty useless unless you have substantial wealth to back it up. 

Crowdpuller Crowdpuller
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Jisko nhi aa rha limit increase offer usse poochho 😊

Finance Ninja Finance Ninja
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The advantages of increasing the limit of a credit card include:

  1. Increased purchasing power: A higher credit limit allows you to make bigger purchases, such as buying a plane ticket or a large appliance, without having to worry about maxing out your card.
  2. Improved credit score: Increasing your credit limit can improve your credit score by lowering your credit utilization ratio, which is the percentage of your available credit that you are using.
  3. Emergency backup: A higher credit limit can provide a safety net for unexpected expenses, such as medical bills or car repairs.

However, there are also some potential disadvantages to increasing the limit of a credit card:

  1. Increased debt: With a higher credit limit, there is a risk of overspending and accumulating more debt than you can comfortably afford to pay off.
  2. Higher interest charges: If you carry a balance on your credit card, a higher credit limit will result in higher interest charges.
  3. The temptation to spend: A higher credit limit may make it easier to justify unnecessary purchases or impulse buys, leading to unnecessary expenses and potential financial stress.
In summary, whether it is worth increasing the limit of a credit card depends on an individual's financial situation and spending habits. It may be beneficial for some people, but others may be better off with a lower credit limit to avoid overspending and accumulating unnecessary debt.


Deal Cadet Deal Cadet
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Thankyou for the input

Benevolent Benevolent
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Yes. Less credit utilisation. Good score 

Finance Mentor Finance Mentor
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Only if the card issuer reports your limit to the CIBIL
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