Okay, I just knew that credit card companies cannot peg your credit limit to a certain amount, since, according to the customer service representative, the increase will be automatic. However, you can decrease your credit limit, provided that you inform them of your request.
This is what I did. Within the year, my credit limit was increased twice, and though it just made me think that I was really a good and faithful payee to them, I felt like I have more than enough of what I need. It’s not that I’m a big spender. In fact, unless I have every reason to do so, the plastic is tucked in the deeper portions of my bag. Besides, I hate it when credit card companies make me feel like I owe them with a huge amount because their simple logic seems to be this way: credit limit-expenses=outstanding balance. So if you’re credit limit is 50,000 and your expenses are just around 3,000, you seem to owe them with 47,000.
Well, anyway, I think I have a huge chance of having my request granted; however, I may be at risk at paying over limit fees, which, of course, I don’t know about. I heard of finance charge, yes, but not this one. So I did a little Googling and here’s what I’ve understood.
Unlike in the “olden times,” when you go overboard with your credit limit, your next transactions will be denied or declined. In other words, you cannot use your credit card anymore unless you pay your balance. However, these days, they seem to allow it, as long as you pay the over-limit fee, which I believe isn’t affordable at all.
The problem here is that if you don’t pay close attention to what you’re purchasing, you’ll be tempted to use your card more, thinking that you still have sufficient balance in your account.
I don’t know if it’s a form of deception, but I’m definitely sure that I don’t like it at all. And, worse, the more that these “strategies” are being used by credit card companies, the more I hate their system and forced to not give them the kind of satisfaction of ripping people’s money.
