Other than the obvious, what are the advantages of extending your credit limit?

The bank has just offered me the opportunity to extend my credit limit beyond ten thousand dollars.


I would never get myself into that much debt as the interest is just phenomenal, so how does it benefit me if I accept?|||Michelle,





Extending your credit limit is only a good idea, if you do not have any credit card debt.





If you carry credit card debt every month, then you need to pay that off, because those interest rates are way to high, and extending your debt in that situation is dangerous, because you could quickly get yourself in years worth of trouble.





However if you do not carry credit card debt and you pay your balance every month, then having a high credit limit is very advantageous.





As you get older, your need for credit goes up, unknow events can occur with jobs, family and emergencies... So a large credit limit will help you if you can keep the slate clean.





If you know you don't have the discipline to pay off your debt each month, then don't touch it..





But if you have been good, then you can accept the new limit and perhaps in a few years, it will come in handy.





Money or access to money gives you flexibility... and that is a good thing if you manage it correctly..





best of luck|||better debt/available debt ratio|||Well, you will have more pre-approved credit ready if for some reason you need it, but that's the "obvious" part. Other than that, there are no benefits to you.|||If you don't need it, then don't extend. It could hurt you on future credit requests.





Potential debt (if you maxed out all your cards) are considered when granting credit.|||It could benefit your credit score by showing that you are not maxing out your credit cards and that you do not "live beyond your means" If you dont plan on maxing it out go for it. It is nice to always have the security blanket in case of emergencies. If you feel like using it and dont know what to buy...I'll take a Playstation 3!!!