If banks increase your credit card limit, is that a sign your credit rating is improving?

Question

If banks increase your credit card limit, is that a sign your credit rating is improving?

Answer 1

No it means that you have been making good on time monthly payments and they want you to borrow more so they can get more interest---don't be fooled!!  I just got a credit card for $1000 about a 2 months ago and used it three times---I just got a notice stating that if I make one more payment on time I can get an increase of $500--so it's just marketing for your cash

Answer 2

no be careful

it means that they think u have spare montly cash to pay bills

I had an EGG card and cos I paid it off regularly they asked me to leave!

my limit was £20k.....

Answer 3

it depends it could mean that the bank see's you make payments on time ect so yes

but banks rarely do things for the consmers benefits there is always added interest on credit cards,overdrafts and loans so theyre more than likely to do to make more money

If theyre not making money by charging you when you miss a payment they will probably increase it to try and make their money from you in other ways :(

Answer 4

No,

it's s sign that they want to make more money out of you by getting you to borrow money at a high rate of interest.

Answer 5

No they just randomly go through and pick people that have had a card for so long and give them small increases. Basically they want you to spend more money so that they make more money of you interest wise.

Answer 6

Not really, some banks use a system where a credit limit is pre approved for a limit increase but after a certain tier they would have you sign for giving them authorization to your credit for your confidentiality.

Answer 7

it just means you are making your payments on time and are therefore a good risk

at that bank

Answer 8

No, if you've been with them for a while and haven't had problems paying off your card, then they don't bother to check your official credit rating before they give you an increase, so it doesn't mean anything.

Answer 9

Or it could be that you are paying it off to quickly and they are making no money on you

Answer 10

It means that you are paying on time, and the agree amount, that your history with them is in good standing.  The do this periodically, and will give you a credit limit increase.