One area of contention with a lot of personal finance people is found within the world of credit cards. A lot of people say that they’re not necessary. We’re going to be a little contrarian and tell you that we think credit is a good thing. However, you need to make sure that you have a lot of self control in order to make the credit cards scheme work for you. If you don’t have willpower and control, you’re going to end up hurting your finances more than helping it. You just need to know the way you spend.
For some people, raising their spending limit is definitely a good thing. On the other hand, if you’re not careful you could give yourself temptation that you don’t need. See why you have to know what type of spender you are? If you’re someone that uses credit for emergencies only, then an increased spending limit can be a good thing. You just need to know where you stand and what you’re actually going to be able to accomplish.
The perfect time to get started is definitely now, while it’s all still on your mind. Why wouldn’t you want to start while it’s still on your mind? If you’re going to get a spending limit raise, here’s what you need to think about.
First and foremost, the credit card company is going to give increases to people that have demonstrated that they can handle it. Just because you might be making more money at work doesn’t mean that you’re automatically entitled to a spending limit increase. If you’ve been late with your credit cards, you will need to make sure that you figure things out for yourself. Otherwise, you’ll end up getting rejected. It’ll be waste of your time. On the other hand, if you’re been doing really well with paying all of your credit cards on time, you’ll be able to get the increase.
Be prepared for the credit card company to start you off with slow increases until they really are sure that you’re going to be doing the right things with credit. We think that smaller increases are nice because you’re able to stop yourself if you end up going overboard. Why wouldn’t you want to make sure that you have more credit?
Aside from the additional spending power when you need it, it helps your utilization score. This means that if you get a credit card increase without spending it, you could improve the percentage of credit in use. This usually leads to a rise in your credit scoring. The higher your credit rating overall, the more likely it is that you’re going to get the best offers from lenders. Building your credit is something that you will have to do over time, but it’s definitely worth looking into. Good luck!