Thursday, 19 July, 2001
Drawbacks of Increased Credit Line
Several people wrote to remind me that a negative effect of having your credit card limits increased (see yesterday's entry) is that you can be denied credit--a car loan, for example--if you have too many credit accounts or too much available credit. Excessive available credit raises a flag because lenders fear that you might actually draw against those lines and dig yourself into a hole from which you can't extricate yourself. Just another reason to keep track of and control your available credit.