Post # 1
Ok, so I don’t know anything about credit lines, lol. So please, help me understand something: Your line of credit has a limit, correct? Let’s say that limit is $20,000. Can your bank raise that limit without informing you? Or do you actually have to talk to the bank and tell them to up your limit? I’ve never used my line of credit, so I have no idea how they work. All I know, is that if you borrow from it, you have to pay it back.
Here’s why I’m asking: J’s credit line limit iswas $20,000. But today as he was going through some of his online banking we both noticed that his credit line limit was now $22,000. He seemed confused about it and didn’t know how that had happened (which I find VERY strange, because he’s very smart, and knows much more than I do about interest rates, banking, etc.). Can a bank do this without your permission? Or do you need to call them and tell them to raise your limit?
If anyone can answer my question, that would be great!
Post # 3
I’ve never had that happen and don’t know much about it but it seems like since the bank generally tells you what your credit limit is when you get the card it would be within their discretion to raise (or lower) it. I would think that raising it would be a good thing though because it improves the debt/available credit ratio that credit reports look it.
Post # 4
They can raise it without you asking them to, I’ve had this happen with a credit card before. They’re probably just hoping you use it and start paying them interest.
Post # 5
I’ve had my credit limit go up automatically over time.
Post # 6
My credit card limit goes up a lot on it’s own. Most likely, they saw that he was good with his card and probably checked his credit score and saw that it was good too. I know it seems weird but it’s a good thing. Just keep putting a small amount on the card and it will look better for his score because his debt to credit limit ratio will go down.
Post # 7
@LGenz: Intersting… Thanks for the info gals!
…J has $8000 available funds in his line of credit. He showed me on his online bank statement today 😀 He told me that when he purchases a ring, he’d use some money from his line of credit when enough became available. I think $8000 is more than enough. In fact, if he spends more than $2000 on me i’ll be mad (but mostly happy).
Post # 8
If he is currently using 12-14K of the credit line, I would be concerned about the amount of money you’re paying in interest, especially if he is looking to finance the engagement ring via the credit line. I obviously don’t know what you’re salaries are, but for me, having that much on credit would be concerning. I’m sure you guys will make the decision that’s best for you both though 🙂
Post # 9
@EvaBostonTerrier: It never used to be a problem, but shortly after we moved in together, he lost his job. So we were extremely tight on cash for about 4 months, and at the time, we had two weddings to attend, one of which I was in. Expensive!!
He’s got it (line of credit) under control and is making great progress paying it down.
Post # 10
They raise your credit limit without telling you a lot, they want you to spend more of their money rather than your own.
I never went over like $100 on one card, then they tripled my limit hoping I would spend more.
Post # 11
Mine goes up automatically periodically. I’ve requested an increase a couple times for the sake of it looking better on my credit score. But I wouldn’t worry too much. A call to the bank wouldn’t hurt either. 🙂
Post # 12
My credit line goes up periodically as well. But, we don’t actually use it – only use credit cards when we can pay them off at the end of the month. If we had $12-14000 in debt, we would not be purchasing jewelry with the rest of the balance!!