Establishing credit history is like the chicken and egg problem.
Lenders give money to people with good credit history and established credit. That does not necessarily mean you are automatically approved.
What you can do if you have your credit limit unexpectedly increased If you find yourself being offered additional credit unexpectedly and miss the 30 day window to opt out, you can still contact their provider and try to reduce your limit.
If you want the extra increase as a safety net, it’s important that you stick to a careful budget and only spend what you can afford – not see the increase as ‘free’ money.
As the holiday marketing machine cranks into gear, more of us will start contemplating the upcoming season’s spending — and our credit limits.
Credit card issuers have relaxed their lending policies, says Card founder Curtis Arnold, especially for people with good credit. Before you seek an increase, says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, you should evaluate why you want it. Not all, but many issuers will respond to a request for an increase by checking your credit, otherwise known as a “hard pull.” “Such inquiries can lower your scores slightly, typically by five points or less, and can be expected to continue to impact your scores for one year,” says Barry Paperno, community director at
“With household debt on the rise, providers shouldn’t encourage customers to bite off more credit than they can chew.” Consent, and ultimately control over their finances, needs to be in the hands of consumers, she says, pointing out that many are in the dark about how they need to opt out of increases, or fail to do so because of the effort it will take them to contact their provider.