hello, i payed down alot of credit cards this last year. After i payed them down they increased my limits sufficantly
1 card 3500 then to 7000 now 14000
2nd card 5000 then to 7000 now 11000
i carry about 1k on each of them, why the sudden increases?
2006-08-01 05:39:14 · 9 answers · asked by doug m 1 in Business & Finance ➔ Credit
the banks know youre capable of paying your credits. they trust you - and want your money.
2006-08-01 05:43:27 · answer #1 · answered by poppy_bloom 2 · 0⤊ 0⤋
They give you high increases when you pay them off, not when you are straddling your limit.
I called Chase a few weeks ago to get an increase on a card with a zero balance and a $400 limit. I think I wanted $2500, they gave me $700. They said I have too many open lines of credit (they have 0 balances) to approve the entire request.
I applied for a new card with Chase last week, and I got it yesterday. The limit is $4,000.
2006-08-01 08:48:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hello doug . Don't listen to those people with discouraging words . You should feel good about yourself, your credit and your credit line . The higher the credit line , the more power you have in the "credit world" , it's showing that you are in an elite credit worthiness class . Just make sure you use them wisely and do take advantage of those 0% offer once in awhile . Watch the mails for more credit cards offers , if you do take new credit, remember to ask the new creditors to either match your existing lines or higher . You're now in the driver seat for demanding higher credit lines with other credit companies .
2006-08-01 06:40:26 · answer #3 · answered by nhan_andy 2 · 0⤊ 0⤋
The companies are trying to seduce you into charging more so you will run up more debt. They make big money off interest on your balances. You have been paying the cards regularily so they figure you will cover your debts. Credit card companies always raise limits when you are close to paying the card off because they know most people will get themselves back into debt once they feel confident they can pay their bills.
Call your credit cards and get them to lower your limits again and to leave them at the level you set.
2006-08-01 05:48:53 · answer #4 · answered by JP 3 · 0⤊ 0⤋
Congrat's, it sounds like you are handling your finances wonderfully.
The credit card companies often do reviews and up the limits of those who have stable payment histories. (not only with themselves but with everyone you owe)
Do not do as a previous poster recommended and have them lower your limit. If you do, it will not only hurt you with the card company, but it will negatively impact your credit scores.
A big thumbs up to you and your good payment habits.
2006-08-01 09:25:08 · answer #5 · answered by echo 7 · 0⤊ 0⤋
they want to encourage you to put more purchase on your credit cards by extending you increased credit. It's a typical ploy by the credit card companies to put more people in debt!
2006-08-01 05:43:55 · answer #6 · answered by ? 2 · 0⤊ 0⤋
well, have you got time to learn all you want on credit cards? here are some links that seem to get me best answers so hopefully they'll do the trick for you and me again :-)
http://credit-cards.ebookorama.com
and http://finance.ebookorama.com
2006-08-02 14:49:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Because you paid them off!
2006-08-01 05:43:37 · answer #8 · answered by aaja 3 · 0⤊ 0⤋
because bank takes your money and give loans to people.after people pay bank gives you 12 %
http://answers.yahoo.com/question/index;_ylt=ApvSn49nxPZ4whzmcp_KBcPsy6IX?qid=20060803031429AA2gaxc
2006-08-02 23:30:21 · answer #9 · answered by kavya 2 · 0⤊ 0⤋