if you get your limit increase on a credit card, is your monthly bill bigger too?

Question

starting off with 300 dollars of credit, my payments are only $15 a month.. When they up my credit limit to 500, would payment increase as well?

Answer 1

Your payments are based on your balance, not your credit limit. So if you don't use the extra credit, there would be no increase in your monthly payment.

Answer 2

It depends on what type of "plan" you have. A basic credit card will let you buy things with a 30 day interest free period, meaning if you pay off what you bought by the due date of your bill, you pay no interest. But, if your credit card gets maxed out (you use the whole limit) and you don't pay it off completely, then YES your bill will be higher. It's based on the amount of credit you have spent.

Answer 3

Don't be fooled into paying only the minimum. That amount normally just covers the interest charge and 2% of your balance. If you pay only the minimum, you'll never get the balance paid off.

Best way is to only charge what you can afford to pay in full every month. And always pay on time.