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Hello, I recently signed up for a new credit card and when I received the card it was shocked at how much they listed as a credit limit. I expected something maybe 1/4 or 1/2 that amount, as I am retired. I assume that it is good news (that they think that I am good for that amount of credit) but are there any disadvantages to having a high limit? I now pay all my credit cards in full every month (but did have some high balances for a while about 12 years ago). My oldest card is about 25 years old.
The only disadvantage I can think of is the ability to change a high balance of your unable to pay it off.
I have several cards that are 20-25k credit limit each. I just pay them off every month and don't accrue any finance charges. I have 94k credit limit combined.
In addition to what others have said, if your available credit is a lot higher than what your income can support, it may make it more difficult to obtain additional credit.
The main downside I foresee is if you lack discipline in spending beyond your means. But the OP seems to pay off credit card debt in full each month, so this doesn't seem like it'll be a problem for the OP.
if terrorists find out that you have a very high credit limit they may kidnap you and force you to buy them bitcoin using your credit card so they can use it to buy terrorist products.
I keep my credit limit on my one card that I use at $3000. I never come anywhere close to maxing that out. I even told Discover NOT to increase my limit unless I expressly request it, and that would only be in an emergency situation. I had a $16,000 limit on that card at one time. I've never been in a situation where I've needed a limit that high.
I keep my credit limit on my one card that I use at $3000. I never come anywhere close to maxing that out. I even told Discover NOT to increase my limit unless I expressly request it, and that would only be in an emergency situation. I had a $16,000 limit on that card at one time. I've never been in a situation where I've needed a limit that high.
I had a relative that had an overseas emergency a few years ago that required hospitalization for weeks. I flew out there to help, and when the hospital wouldn't take US insurance, I ended up having to put $40k+ on a credit card.
Someone else might never need a high limit, but I like having one just in case.
if terrorists find out that you have a very high credit limit they may kidnap you and force you to buy them bitcoin using your credit card so they can use it to buy terrorist products.
LOL!
Well, it isn't that high, just a lot higher than I expected.
I had a relative that had an overseas emergency a few years ago that required hospitalization for weeks. I flew out there to help, and when the hospital wouldn't take US insurance, I ended up having to put $40k+ on a credit card.
Someone else might never need a high limit, but I like having one just in case.
This plus with a limit of 3k or less utilization could easily become an issue for me. I have one card that has a 70k limit and the rest are 20-30k each
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