How Credit Card Companies Determine Credit Limits
When you apply to open a credit card, the card issuer will tell you how much you’re allowed to charge on the account at any given time upon being approved for the card. This maximum spending cap is known as your credit limit. But when you apply for that card, have you ever wondered what exactly the issuing bank does to determine your credit limit? First things first, having a higher credit limit may be helpful for several reasons. First, it gives you more buying power or... read more »
