Today, credit cards are very common for everyone. It does not take much to get one and as long as it is handled correctly, they can bring many benefits for finances.
A well-known situation is that, through a text message, notification in the application, email or even a call, the bank communicates with its customers to notify them that they have obtained an increase in their credit line, in many cases , doubling it or even tripling it. But what does that imply? Is it positive that the bank tells you this?
Would it be an appropriate decision to accept it?
First of all, you should know that it is a good indicator for your profile as a client, it means that the bank appreciates your good behavior, that you pay your fees on time, that you do not consume your entire line of credit month by month, etc., and by That considers you a low risk client and a good candidate. So, this is a positive point in favor of your credit profile.
Second, accept or not, will depend entirely on you. What you should consider is that, by increasing your line of credit, while you will be able to finance a larger purchase, it does not mean that you are really “earning” more money, as it is still being borrowed.
You should also keep in mind that you are increasing the risk to which you are exposed and if you are not disciplined with your purchases, this could play against you.
If you decide to accept the increase in your credit line
Remember that it should not exceed twice your salary or at most, if you have only one card, triple. More of that is considered an unnecessary risk.
Finally, remember that new cards constantly appear or the conditions of some are renewed, so that from time to time you can compare alternatives to verify if there are any more convenient for you and thus cancel the one you currently have, and request the new option.