Should you accept a pre-approved credit limit increase?
A credit limit increase will give you more buying power with your credit card, but it can also dent your credit score. Here are the pros and cons to consider before accepting a credit limit increase.
December 11, 2019
5-minute read
Credit card limit increases seem to be all the rage these days. You could be doing online banking, withdrawing money from an ATM, or even getting your mail and there’s a good chance you’re going to be prompted about a credit limit increase.
It’s no surprise that financial institutions hope you accept a credit increase, since it means you’ll potentially spend more money. But a credit limit increase has the potential to help you manage your cash flow, which could be a good thing. Before you accept or decline the offer, be sure to consider the pros and cons.
About the author
Barry Choi is a personal finance and travel expert based in Toronto who makes frequent media appearances. His work has been featured in The Financial Post, The Globe and Mail, WestJet Magazine and more. You can check out Barry's personal website at moneywehave.com or you can find him on Twitter: @barrychoi
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