Credit Limit Increases

When you are watching every penny, you sit at home and make financial calculations in your mind while other people are out engaging in leisure pursuits, or so the influencers on YouTube would have you believe, then you try to spend your free time on income-generating activities, or at least on doing things that do not cost any money. You watch videos on YouTube, even though, with your free YouTube account, ads punctuate your videos every few minutes. You browse the Craigslist ads for remote gigs until you have viewed the pages for every major city in the United States, and then you go for a walk around your apartment complex to give the people who might have the funds to pay you for gigs time to post more ads. Despite all your efforts, the only way you can get through the summer is to borrow more money. How can you borrow more without risking your credit score? Credit limit increases are one of the less risky sources of emergency funding, if you can qualify for one. For help with short-term and long-term solutions to your debt problems, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

Is a Credit Limit Increase the Simplest Fix for Your Summer Debt Woes?

If you are in the market for a credit limit increase, consider yourself lucky. It means that you already have a credit card. It is easier to borrow more money from a creditor that has already lent you money than it is to try to make a good first impression. From both the lender’s perspective and the borrower’s, the devil you know is better than the devil you don’t know. Yes, you are already indebted to the credit card issuer, but the credit card issuer has already lent you money before, and you have already made payments.

If the lender approves the credit limit increase, then it decreases your credit utilization. This is good for your credit score.

What Can Go Wrong With Increasing Your Credit Limit?

The best-case scenario with credit limit increases is when you get approved for a greater increase than you requested, or when the credit card issuer offers you a credit limit increase without you asking for one. The danger of getting a credit limit increase is that, by the time you are finished paying for summer camp and your beach vacation, your credit card balance can be substantially higher than it was in the spring. Another danger is the hard pull of your credit report that the credit card issuer must do before deciding whether to issue the credit limit increase. This can bring your credit score down. Likewise, if the credit card issuer denies your request, this can make it more expensive for you to borrow from other sources in the near future.

Contact the Law Office of Melanie Tavare About Credit Limit Increases

A debt relief lawyer can help you if you have a credit card, but you need to borrow more money. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.