Why do CCs increase your credit limit without being requested?

[Lost_in_the_HTTP]

Got an email overnight that one of my CCs increased my credit limit by almost $1,500.00

I've never even come close to the old limit, never over more than about 20% of that limit, usually no more than about 10%. I did not request an increase either. Credit score hovers around 800 at least in part due to low credit usage.


And I thought I saw a money/finance section here at one time, but not now.

 

[highland145]

Temptation

 

[ultimatebob]

I'm not sure. In my case, my credit score recently jumped because a short sale came off of my credit report. Chase promptly increased my credit card limit from $5,000 to $23,000.

Why I would need that? I have no idea. It's nice to know that I could now buy a condo in Vegas if I could split it over my credit cards, though

 

[Zeze]

I wonder why duh.

20 yrs ago, my first CC - they auto raised my limit from $500 to several grand. Everyone does this - MC, Visa, Discover, Amex, etc..

Rather surprised you haven't noticed.

 

[deadlyapp]

As someone else said, people generally have a psychological negative emotion about spending close to their limit, so if they raise the limit more people are generally willing to spend more on it, even if your historical behavior doesn't show a need.

At the end of the day, an increased limit on your card generally only has positive benefits for your credit score. I've got one card that started at 5500 or so and now is up around 30k without me ever asking.

 

[Svnla]

CC companies can cut your credit line on a whim too, especially during this virus thing. So consider yourself lucky if they increase your credit line.

 

[[DHT]Osiris]

Abusing psychology to get more money from you.

 

[highland145]

Abusing psychology to get more money from you.

Is that wrong?

 

[VirtualLarry]

Abusing psychology to get more money from you.

Didn't know that CCs were female. Interesting.

 

[purbeast0]

I don't think that's ever happened to me.

What I usually do though is when I get a new CC (couple times a year) I'll have like a 30k limit or something. I will immediately request to have it lowered to like 8k or so.

I do that because I play the credit card game and don't want to have a ton of available credit if I'm applying for more.

 

[TeeJay1952]

For a bank the potentiality of your indebtedness is an asset.

 

[jameny5]

I had a company close my credit account and they didn't give an explanation why they were doing it. I was paying the account on time. I didn't make any late payments. To this day - I can't figure the reason why they did it.

 

[[DHT]Osiris]

Is that wrong?

Depends on what you consider wrong. Your moral compass, I guess. I consider it abominable.

 

[LikeLinus]

I had a company close my credit account and they didn't give an explanation why they were doing it. I was paying the account on time. I didn't make any late payments. To this day - I can't figure the reason why they did it.

I had this happen with Citi and will never use them again. They closed my account and I didn't realize it until I tried to use my card one day. I call and they said they closed my account due to non activity within a 12 month period. What pissed me off is the fact they never told me! No emails or postal letters that they were going to close it. I had to find out through a decline at a store.

Now I just stick with my Chase Saphire Reserved, Freedom Unlimited and Business Ink. Citi can suck it.

 

[Lost_in_the_HTTP]

I had a company close my credit account and they didn't give an explanation why they were doing it. I was paying the account on time. I didn't make any late payments. To this day - I can't figure the reason why they did it.

I've had two or three closed by Chase for non-use. I kept them open and in reserve for emergencies, but didn't use them for a couple of years.

Have also had a big box store branded MC closed when they dropped the program.

 

[waffleironhead]

They could be doing you a favor by lowering your credit utilization rate. As long as you dont up your spending to meet your new limit that is. A lower credit utilization rate is supposed to increase your credit score.

 

[Svnla]

Didn't know that CCs were female. Interesting.

You didn't know? CC's are smooth and easy and lovely when you pay the bills on time (you buy presents and gifts promptly to your girl = happiness and all). Wait until you are late on the payments of the CC's (you forget her anniversary/birthday/<fill in the blank> = all hell broke loose).

 

[manly]

I've had two or three closed by Chase for non-use. I kept them open and in reserve for emergencies, but didn't use them for a couple of years.

Have also had a big box store branded MC closed when they dropped the program.

In the immediate aftermath of the mortgage financial crisis, banks scrambled to lower their leverage and strengthen their balance sheets. A small part of this was to shed some of their exposure to consumer credit card risk. I was a bit negligent and had 3 old accounts closed due to non-use. BofA wrote me and gave me a chance to keep the account open, but I wasn't paying attention. The best run of the largest U.S. banks, Chase, didn't bother to give me that courtesy IIRC.

But yeah the moral of this story is use your CCs once a year if you want to keep them indefinitely.

 

[Ajay]

Yeah, Loews doubled my credit limit - I called them and knocked it back down. It was already high enough to contract them to put a new roof on - like I would, hahahahahhaha!

 

[Stiff Clamp]

I've noticed my credit card company has ceased sending me checks I can fill out to get me further in debt. Been a few years.

 

[JPS35]

 

[Fenixgoon]

my credit score: goes down because the % credit used increased (I use my CC for basically everything and pay it off in full each month)

me: ok, let me request an increased credit limit so the overall % used goes down

CC company: limit increase denied because you haven't used enough of your credit

credit score is such a dumb fucking game.

 

[Ajay]

my credit score: goes down because the % credit used increased (I use my CC for basically everything and pay it off in full each month)

me: ok, let me request an increased credit limit so the overall % used goes down

CC company: limit increase denied because you haven't used enough of your credit

credit score is such a dumb fucking game.

Too bad you aren't an ATOT millionaire - problem solved.

 

[Denly]

It have been decades since any of my CC up my limit without asking, might be diff regulation up here in Canada.

 

[Spacehead]

I've never had that happen. Actually i've been meaning to ask them to raise mine a bit... just haven't got around to it yet.