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09-03-2014, 08:37 AM #1
Spending Close to the Max on Your Cards Can Lower Your Limits
If you spend a lot on your credit cards where it is about 5-10% of the maximum limit, and you become past due or close to it being late, due to family or travel reasons. Your limits may be reduced without you being aware. If that happens, just simply call them to re-instate it. They may ask you for bank statements to see that you fulfill your obligations as you use the card.
09-03-2014, 10:11 AM #2
Some of the department store cards like Walmart will actually give you a credit limit increase (when you are near maxing out your card) as long as payments have been made on time.
It is important to stay on top of payments and have an emergency fund to cover expenses if needed. It is a good idea to have three months of bills set aside in case something happens. If it costs you $1000 to live and pay bills each month, consider putting aside $3000 in case something happens.
Many credit card companies will work with you on taking off late charges for a one time instance, especially if you have been a good customer with them. It pays to talk to them at times. Just can't do this type of request on a regular basis with the credit card companies.Need a Card to Build/Rebuild Your Credit With? Read This >> Best Credit Cards For Building Your Credit
09-09-2014, 08:14 AM #3
I think you need 6-9 months set aside nowadays with the tough job market. Experts know that many people are unaccounted for and the system counts someone as getting full-time job when they work part-time instead of previously working full-time.
09-11-2014, 07:15 PM #4
Not true all the time. Some companies will give you a CLI if they see you as a trustworthy consumer.
09-12-2014, 10:14 AM #5
Thankfully, I have never had my credit limit lowered. I have at times come close to my maximum before I realized I should not do this as it could affect my credit score.
10-27-2014, 04:01 PM #6
- Tampa, FL
There's a balance to it- if you spend a lot but make big payments, the banks are happy. OR if you keep the balances on your accounts at 35% of what the limits are, it will not affect your credit scores.
If you make the big payments, try to send it in about a week or two before the due date. Creditors generally report to the bureaus right before the due date (to try to report the highest balance). So if you pay it early, they'll have to report the lower balance.