A client of mine reached out to me asking if they should respond to a note from their bank. The bank was reaching out to possibly increase my client's credit limit on her credit card.
While at first glance this might seem like a good idea, I responded to my client with the following:
"My advice is to decline the offer from the bank. The interest rate on that credit card is high and we are on a plan to pay off this credit card - or transfer the balance to a zero percent card... so the increased limit won't help you since you don't use the card. Also, we plan to apply soon for a new zero percent card so having this bank do a 'hard pull' on your credit score right now will negatively ding your score."
I also made sure to give my client a HUGE HIGH FIVE because it's important to recognize and be proud of her efforts in budgeting... which brought on this note from the bank in the first place!
According to wallethub.com
"Creditors periodically review cardholders' accounts and may consider increasing the credit limit as a reward for consistently paying the monthly bills on time and maintaining a low debt level."
Cheers!
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