Should credit card companies be allowed to increase credit limits arbitrarily?

Question

Should credit card companies be allowed to increase credit limits arbitrarily?

Answer 1

Part of your credit score is how much of your available credit you are using wisely.  So having your limit raised should be a good thing.

Your credit limit should NEVER be a goal (that would adversely affect your score).  You should try to stay as far below it as you can.

Answer 2

If your asking for opinions, I say sure they should..  That's business.  

If a borrower doesn't want this to happen, he/she should make sure it is in the contract .

Answer 3

Agreed. I work for American Express, technically, the actually percentage doesn't change, it's the Prime Rate. Currently it's 5, but it's going down. Couple years ago it used to be 7.25!!

And companies have to make money. It's a way of life and it's currently paying my salary.