I just discovered that Chase increased my credit limit and lowered my interest rate.How come?

Every analyst says credit card companies will cutting credit and raise rates. But I am surprised mine was my limit was raised and interest was cut. Should I reject the extra money?|||YES! U are probably a good paying-on-time customer and they want ur business. Reject it if you don't need it. Try to pay 4 everything with CASH!|||Reject the higher credit limit or not, it's your choice. Personally, I've called each of my credit card companies, and lowered my limit to a number I am comfortable with, and told them that they may not raise it again without my request. They were perfectly happy to comply.





But your statement explains how so many people get into trouble. This is not extra money! Credit is not money! If you use it, and you can't pay it back, then it is DEBT, not money.





The media is sensationalizing what is going on in the credit industry. The credit industry exists to make loans. If they don't make loans, they don't make money. If they don't make money, they go out of business. So the industry is still lending plenty of money. It's just that they are only lending it to people who they are confident will pay them back. Whereas before, they would lend to anyone and everyone. So you are obviously a person who the credit card companies want to do business with - someone who pays their debts on time, and honors their agreements.





|||Chase just acquired WaMu, that means they just ate another company so they got WAY bigger... They want to get people to spend, especially during the Christmas season... You will spend the money they gave you thinking that your low interest rate will save you in the end but with the economy the way it is, you may lose your job or at least have your hours cut back... They aren't worried about that, what they ARE interested in is that once you have all that credit spent, they will raise your interest rates back up and POOF, you'll be paying back interest for the rest of your life instead of paying down your actual debt.


It's evil, it's dirty, it's CREDIT.|||Don't reject the increase or the lower rate, just keep to your budget. They are probably doing this in hopes that you don't start thinking about changing cards...competition is crazy for consumers' business, despite the gloomy projections of the analysts. Also, you are obviously someone with a good credit rating; from everything that is currently going on on the global financial scene, people with good credit histories (and consequently, good credit ratings) are becoming more rare. Be proud of your good financial habits!|||It appears you are very smart at handling your financial responsibilities and pay your debts on time.





Do not reject the increase just keep doing what you have been doing because you now have lowered your debt to available credit with the increase, just don't use the extra credit limit (unless for emergencies).





OR%26lt; Santa came early this year.





Good luck and use it wisely.|||Just because your credit limit was raised it does not mean you have to run up the bill to the limit. I know that is a very hard thing to do when carrying a credit card. The good news though is that they have lowered your interest rate, it means that you are in good standing with them and that you pay your bills on time. It also means that your good standing will be reported to the major credit bureaus. Good for you!|||They are doing this because banks are in deep trouble due to the mortgage crisis which led us to the recession. It has nothing to do with paying on time or if you are a good customer or not. All they want is to make money. And if you give the customer more money on the credit card and lower the interest rate the hope is that the customer will be happy and will use the credit card more often which means once your bill comes in you will only be able to pay the minimum because you charged way too much on the credit card the bank makes money





I should know I work in the banking industry|||Chase and other credit cards will increase your credit limit due to great paying history, you apparently made all your payments timely and pay the amount due or the minimum due.


Just be careful now and don't use the credit card anymore than you normally did. Use it when you know you will be able to afford to pay it back ASAP.


I am not sure that they will accept the rejection.|||It depends on how high it is... if it's a ridiculous amount then yes. What has probably happened is they have seen that you pay your credit card off every month and they've not been getting interest off of you and so they are hoping that you'll borrow too much by increasing your limit and decreasing your rate, then when you have a few months of interest, they'll increase your rate again. Don't fall for that trap.|||In the middle of all of this mess, there is intense competition for the best customers. They want to keep you and are taking preemptive action so that you won't jump ship for a lower rate or a higher limit. This is how a big, impersonal bank says, "I love you".|||You were making your payments on time.


You're improving your credit.





Good job.


Don't mess it up.


Don't let the holiday season tempt you on spending!|||they always do that to the people with good credit report and no relate to mortgage. i heard only american express cutting credit line|||There is no "extra money." Just a higher limit.|||Hmmm, for the holidays baby. They do that so that you can CHARGE UP! Don't do it, just pay CASH!|||To get you to spend more on it and be late paying it so they can get your money with late charges. Yes reject it! |||just keep spending the usual.|||It's probably becasue you've had a good record of paying.


They like you and are rewarding you!|||Clearly they mistook you for someone else. Double check the account #. lol|||Simple, they want more of your money.|||you have shown them that you are responsible|||NO don't reject the extra money. u jus pay less interest





Best Wishes!!!