I have a Bank of America card I could almost buy a house with...I have 4 that have totally outragous credit limits...one a zero percent...Amex & Citi raise my limits every 6 months or so...........WHY...I never need or use anywhere around these amounts
2006-09-25 16:15:15 · 13 answers · asked by Anonymous in Business & Finance ➔ Credit
Because you have excellent credit and probably make a lot of money. I would live off that 0% card and keep my money in a cd until it's time to pay off that limit before the interest applies.
2006-09-25 16:27:32 · answer #1 · answered by Marleaux 3 · 0⤊ 0⤋
The higher they set the credit limit, the more you can spend. And the more you spend, the more they make. They make tons of money through interest. So if you have a small balance, you can only spend a small amount, they don't make so much. If you have a HUGE limit, then you can spend more, you may not, but you could, which means they can make more money. That and ifyou have good credit, they don't fear you filling bankruptcy or not paying your monthly payments, so they give you a higher limit. And with a higher amount, if they decide to raise the percentage rate, they will make even more money. Them giving you a high rate, is benefiting them, more than it is you. Just be happy that you have that good of credit and be proud of yourself that you can keep them paid off.
2006-09-25 16:19:20 · answer #2 · answered by Jessica 6 · 1⤊ 0⤋
Because they want you to go into debt! They have the option of raising your percentage if you are ever late...and they are counting on that. I read an article the other day that said that the average American owes $10,000 in credit card bills! I find that hard to believe, I wouldn't be able to live with myself and I have had very high amounts myself, but I got myself out of debt.
2006-09-25 16:18:23 · answer #3 · answered by Dorothy 5 · 0⤊ 0⤋
It's so that they can tempt you with accessibility of the money being there so you'll end up in mega debt one day and then they'll be laughing all the way to the bank....that's why I don't even own a credit card.
2006-09-25 16:23:29 · answer #4 · answered by Elisha Renee' 1 · 0⤊ 0⤋
So they can get you in debt as fast as possible.
Thankfully, I learned from watching others. I'm 25 and the only credit card I own is a Victoria's Secret card.
Nearly all of my friends went into debt while in College.
2006-09-25 16:24:45 · answer #5 · answered by apinkfreak 3 · 0⤊ 0⤋
Dude, be grateful that your credit is good enough to have limits through the ceiling...some people would do anything for that! If you're uncomfortable with the limits, call and tell them.
2006-09-25 16:18:45 · answer #6 · answered by Moxie Crimefighter 6 · 0⤊ 0⤋
That is how they make lots of money ,if you carry a large balance 9% to 24% their laughing all the way to the bank.
2006-09-25 16:29:04 · answer #7 · answered by Mojo Seeker Of Knowlege 7 · 0⤊ 0⤋
Depends on your spending pattern, your payments and your credit rating. If I feel uncomfortable with the limit, I usually call them and have it reduced.
2006-09-25 16:24:24 · answer #8 · answered by worldneverchanges 7 · 0⤊ 0⤋
they are the legalized mafia of today's world!! once they notice you they will pester you with their schemes of cards and numerous loans etc. and when u fall into their trap,u end up paying an huge interest!!and if you fail to pay up,they stop all their sugar sweetness
and send their recovery goons!!all in the name of law!!
2006-09-25 16:26:40 · answer #9 · answered by sunny 2 · 0⤊ 0⤋
They want your money. The interest rate is so high, they make a fortune off of it. They are white collar loan sharks!
2006-09-25 16:23:30 · answer #10 · answered by FL Girl 6 · 0⤊ 0⤋