Offered a higher credit card limit: should you accept or reject it? – The National

Offered a higher credit card limit: should you accept or reject it? – The National

While a limit increase is a good reflection of your creditworthiness, it can be applied without a borrower's consent





























Illustration by Mathew Kurian 











When your bank offers to increase your credit card limit, it may seem like a good idea to have access to more money in case you need it in an emergency.



A limit increase can be a good reflection of a cardholder's creditworthiness, but should consumers jump at the offer? Not so fast, says Ambareen Musa, the founder and chief executive of UAE price comparison site Souqalmal.com.



She says consumers should be particularly wary if their card limit was increased by the issuer without their approval being sought first.









It's actually detrimental to hand over excess credit to borrowers who are already struggling with existing debts.





Ambareen Musa, Souqalmal.com





"Think of an unsolicited credit limit increase as an upselling marketing technique employed by the bank to encourage you to spend more on the credit card,“ says Ms Musa, who says having access to a higher credit limit could pull consumers