Should You Take The Higher Credit Card Limit?

Accepting the nice gesture in the post isn't always the right thing to do

Vikram Barhat 12 October, 2020 | 12:16PM

Dollar signs

At some point or another, most people have received a note from the bank offering to increase the spending limit on their credit card. Such an offer is validation of creditworthiness, but should you accept?

Studies show easy credit can be dangerous. A report from CreditCards.com shows nearly half (47%) of US adults, or about 120 million people, currently have credit card debt. Americans owed a whopping $1 trillion on credit cards at the beginning of 2020. They are not alone. Brits owed more than £72 billion on credits cards at the start of the year - equivalent to £2,595 per household. These numbers are only likely to tick higher in light of the Covid-19 pandemic. 

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About Author

Vikram Barhat  is a Toronto-based financial writer specialising in investing, stock markets, personal finance and other areas of the financial services industry. 

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