Don't credit card companies require your authorization to increase your limits?

Question

Should they just be allowed to send you a notice in the mail saying stuff like*Congradulations, for being committed to them and for having perfect payments etc...that they can just raise it from 7500.00 to10.000 without even asking if you want it?

Answer 1

They raise it based on your past history of paying. I agree they should ask, but they don't have to. I have actually call a couple in the past and asked them to lower my limit and lock it in. That works.

Answer 2

That is their way of telling you that you are not only a good customer with them, but that you are also a good customer with other companies.

Just because they give you an increase DOES NOT mean that you have to use it.

With the increase comes a better credit score.

Don't ask them to lower your credit limit. If they are already reporting the new limit when you ask for a credit limit decrease, your scores will drop.

It seems that you probably have a pretty good handle on your credit if you not only have a decent credit limit to begin with, but to receive an unasked for increase for that amount.

Answer 3

Absolutely!!! Never take anything off of a credit card company!!! They are out to screw you every way they can. If they put a charge on your card that you did not make or ok, they have to take it off and if they don't - it's lawsuit time baby!!! Cut that thing up and never use one, just plan ahead and send money orders for reservations and such. I mean think about it, if you go to pay for shoes, the shoes are $100. Well take 20% of that and tack it on if you don't pay it right after you use the card. That's $120 for $100 shoes!!!! Credit cards are never worth it unless you own a business then the business takes care of the payments each month and you also have a record of what you've bought.

Answer 4

"should they" no but they are. You can ask to have it reduced again. It was explained to me (by a Debt councilor) that the reason for it is, if another company looks at your credit lines, they don't base their decision on whether to give you credit on how much debt you have, but the *potential* debt you *could* incur. So companies raise your limits as a way to keep you from going to another company, basically.

Credit cards are a great evil.

Another tip, if your APR is high, call and ask to have *that* reduced as well. Most cards will, so long as you're in good standing.

Answer 5

Yes, they can. And remember, just because you have the credit line, doesn't mean you have to use it. And don't assume that a higher LIMIT hurts you or your credit score. One of the big factors contributing to your credit score is the percentage of open credit that you are using. So if today, you are using $5,000 of a $7,500 limit, your percentage of credit used is 66%...which decreases (assuming you stay at $5,000) to 50%, with a $10,000 limit.

Answer 6

No authorization required. If the percentage of credit used vs. credit limit is 50% or so, your FICO score will be improved. Try: www.banccardsfinancial.com

Answer 7

Just because they have increased your limit of credit doesn't mean you have to spend that amount. They are raising it due to your past credit history.

Answer 8

They increased my credit card like that just month. No authorization is neccessary because when u sign the inital contract all those details are in there somewhere in small print. You can probably deny the increase though. Call them to ask about declining it.

Answer 9

when you sign up you give them permission to review your account and raise the limit if you pay on time and they want to. You can call them and have your limit lowered at anytime.

Answer 10

Yes they can, and they do. It is considered a reward from your good standing. If you do not want the increases to happen just call them and let them know.