Today’s world is expensive and the prices of everyday commodities are rising quickly sometimes our limited income Is not enough to fulfill our daily expenses. In the old days, individuals used a cut-off on a few things to manage their finances but in this age, just cutting not-so-important expenses is not enough. You need a quick, easy, and reliable method to reduce the impacts of fluctuating prices in the market and what can be better than a Credit Card with an increased credit limit?

The increasing credit card limit is sure very tempting. Credit Cards are great deals, but an increased credit limit will make you more prone to increased debt risk. Not only that but with great power comes great responsibility as well. Since it is very easy to be irresponsible with the increased credit limit. However, that might not be the case with everyone, you just need a little self-control.

Increased Credit Limit is a great offer, can help you bear all of your daily expenses, and your purchasing power increases as well. But not necessarily it is a great thing, there are many after-effects that need to be taken care of to maintain the credit score and the credit report. It does not take a lot but just consistency and responsible behavior towards your credit utilization and repaying method.

Pros and Cons of Increasing Your Credit Card Limit

Pros & Cons of Increasing Credit Limit

As stated earlier the increased credit limit comes with its advantages and disadvantages. It is a great thing to begin with but there can be disruptions on your credits that needs to be taken care of. Here are the pros and cons of increasing your credit limit –


1. More Purchasing Power – Without a second thought, the best part of an increased credit limit is more purchasing power. This is something that we all desire and do not desire but the limit can also help us keep our lifestyle on track and even better, raise the standard of living. The increased credit limit gives great power of purchasing where you can create a home full of comfort for yourself and raise your financial status in society.

2. Emergency Safety Net – It is always advised by the financial planner to at least have three to six months of savings to cover the expenses in case of any emergency. In severe situations such as the pandemic or in cases where people lost their jobs. Here in these cases, your saving will help you a lot to go through that difficult phase. But what amount would be sufficient, and how much credit should be available in order to make ends meet? The default option is your savings in a saving account but you should also have other financial tools in order to keep things on track. A credit card with a great credit limit will not only become your safety net but it will also not let your savings suffer in emergencies.

3. Improved Credit Utilization Ratio – With a higher credit limit, you will also be able to improve your credit utilization ratio. An ideal ratio for credit utilization is 30% to 50% of the total credit limit. And the increased credit limit will manage things pretty well for you.

The above-mentioned pros can further associate with more good points such as the more you will purchase, the more rewards you will get, and the more milestones you will crack. This also means that you will save more money with discounts and deals offered by the credit card for you.


1. Room for Debt Trouble – The higher your credit limit will be, the more credit you will be able to use. This is a good thing to begin with but it also means you be borrowing more money. Borrowing money means, you will have to pay the amount just not in an instance. Here, you need to be very sure about your expenses and be responsible for repaying the debt.

2. Credit Exposure – With increased credit cards, you have more exposure which means it is going to affect your credit mix. This makes sense when you apply for another credit card, there your credibility of even a minimum limit set might be questioned because you already have a higher credit limit with another Credit Card. The other bank might not give you the credit limit which you expect. This is because the credit card you have with another bank has higher credit limits, and the next bank will check your credit history to give you the credit limit.

Many other factors get impacted in a bad way such as your credit mix and other borrowings. The hard pull will also make a pretty bad impression on your credit history.

However, the bank is not subject to increasing your credit limit at your will. They will do it if they find you fit for it. This also means that your credit increase request might also get denied at a time.


The increased credit limit sounds very appealing and it is a great way to meet your day-to-day requirements with the skyrocketing prices of almost everything. However, an increased credit limit does not necessarily mean always great. It also has bad impacts. It’s not that the bad impacts are not manageable at all. All you need is patience and consistency and all the aftermath will be cleared out.

Whether or not, you choose to further apply for an increased credit limit, just make sure that before applying for the limit, you ask yourself whether or not you need the increase or will you be able to pay off all your debt. All these questions will help you get the best outcome.

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