Why is upping the limit a good thing?

digitalphase

Just wondering why everyone is getting excited over credit limit increases on sub-prime cards. Is it because:
a) You want to be able to borrow more, but surely that can't be for many months as the APR is huge?
b) It looks better on credit file to have a higher limit
c) It means you are conducting your account well, which will reflect on your CRA
d) None of the above

I wouldn't bother asking if it weren't about sub-prime cards, and their huge APR. For mainstream cards it's good for your limit to go up as you can borrow more and it won't cost the earth :rotfl:

thriftymomma

It lovers your debt used/available credit ratio which is good, and it's just a bit of an adrenaline buzz. Makes you feel like you are getting somewhere!
And interest rate is irrelevant if you pay off in full every month anyhoo.

pre123

ive had 4 non-sub prime credit cards for about 2-3 years and never had my limit changed but have an argos store card with 27.9% APR and that gets increased every 3 statements
how do ppl manage increases on their credit cards??