However, by accepting such offers of higher credit limits, there can be a fear of falling into a debt trap following higher credit card spend. In case your existing credit card issuers refuse to increase your credit card limit, apply for additional credit card(s) from other card issuers," said Sahil Arora, director, Paisabazaar.com. You may get a higher loan sanctionedAn enhanced credit limit allows you to avail higher loan amount through a loan against a credit card, given that such loans are generally sanctioned against the credit cardholder’s credit limit. DisadvantagesHigh credit limit leading to more debtAlthough an increased credit card limit can enable you to spend more, it can also land you into more debts, if not used mindfully. Loss increases if your credit card is misplacedIn case your credit card gets stolen, the loss incurred will be more as the credit limit is high.

Source: Mint February 25, 2021 06:33 UTC