Is it good for a credit card company to increase your credit limit?

I first started with a credit limit of $500.00, after a 3 years of having paypal and using it constantly for 3 years and paying 3 times the minimum payment they raised it to $2,500.00 is that good for my credit? What does this mean? Thank you guys!!|||It does mean that the lender trusts you with more credit line on the card. The value is that it gives you more limit to use if you need it, but the bad is, if you take that as a 'license' to spend more and live with your balance up near the new credit limit, you may harm your rating.





The best thing is to keep your average balance below 70% of the credit limit, (below 50% or 30% of the limit would be best) and that will help your score better.





It gives you more room to keep a lower average balance compared to the limit while having access to more credit as you need it. Use it wisely and you are in good shape. Use the higher limit poorly and you can damage your credit too. Good luck.|||Yes, assuming you don't increase your monthly spend, this should help improve your credit utilization ratio which accounts for about 30% of your FICO scores. Be sure to pay off any balance you do carry from month to month and that will help improve your scores even more.|||its good but bad.


it means credit card companies beilive you are reliable and trust you enough to lend you more money beacause you already deposit certian amouts over time..


but its bad beacuase you can spend more meaning bigger bills...but at least you have more money to fall back on....