Skip to content

NOOBFEEDS

Tech for innovators.

Menu
  • Finance
  • New In Tech
  • Tech for Innovators
  • Business
  • About
  • Stocks Tips & Recommendations
Menu

Think carefully and decide to increase the credit limit, know its advantages and disadvantages

Posted on February 26, 2021February 26, 2021 by Nidhi Malviya

Customers whose CIBIL score is good, they often get such calls or messages from the bank in which they are offered to increase the credit limit.

Some people accept these offers to increase their credit limit while some do not increase their credit limit. Today we are telling you that what are the disadvantages of the benefits of increasing the credit limit.

Benefits of increasing the credit limit

An advantage of increasing the credit limit is that your credit score can improve. Your credit limit increases only after your CIBIL score is corrected and the repayment history is corrected.

If your credit limit is increased, then you will be able to better cope with difficult times like going to job, illness, accident.
There is also an advantage that if you cannot pay the credit card bill till the next due date, then you can get your entire bill or parts of it converted into EMI.

If your credit limit is increased then you can get more loan in lieu of credit card. However, those who have a good credit history and who have paid on time will get this loan.

Disadvantages of increasing credit limit

Perhaps the biggest disadvantage of a large credit limit is that you can increase the debt burden. Increasing the credit limit will increase your spending capacity. If you do not use a credit card thoughtfully, then you will be caught in the debt trap.

If you do not pay the bill, you will have to pay more interest on the outstanding amount. If your credit limit has increased and you have spent more then it is more likely that you will not be able to pay your bill in full. In this case, you will have to pay more interest.

Nidhi Malviya

Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *




  • Documents required for home loans (Complete list here)
  • Binance crypto TradingBinance: You Are 3 Steps Away from Crypto Trading
  • PAN cardAfter marriage, surname change has to be done in PAN card, in this way update name follow this easy process
  • Unemployed are getting a government job in lieu of an application of Rs 1280! Know the truth of this news
  • LIC IPOLIC IPO Update: LIC appoints Sunil Agarwal of Reliance Nippon Life Insurance as CFO before launching IPO

Looking For Something

Let’s Connect

  • Instagram
  • Twitter
  • Facebook

Navigate

  • ABOUT
  • Privacy Policy
  • Contact Us

Pages

  • ABOUT
  • Contact Us
  • Our team
  • Privacy Policy
  • Stocks Tips & Recommendations
  • Terms Of Service