Increasing the higher credit card limit can result in both advantages and disadvantages. Credit cards set a limit for usage that you use for purchases.

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higher credit card limit

If there is a lower credit limit, you use a fixed amount to increase it. The advantages and disadvantages of

First of all let us look at the benefits of having a higher credit card limit,

Benefit:

1. Financial Security:

higher credit card limit provides a sense of financial security It is a better way to handle emergency expenses Read about how to increase credit limit

2. High Credit Score

higher credit card limit improves your credit score, it shows how much your creditworthiness has increased, you have access to more credit, it can be viewed positively.

3. Emergency Fund

Money is very much needed in case of emergency, in such a situation, if you have a credit card with a higher credit card limit, then it helps in the form of an emergency fund, later you can repay the amount.

4. Purchasing power

You can buy any electronic or expensive things High credit limit gives you purchasing power Helps in big purchases Money supply goes through it instantly If there is a low credit limit then it is difficult to take advantage

Now let us know about the disadvantages of higher credit card limit,

Harm:

1. Additional Loan

Due to higher credit card limit, you start spending extra wasteful in addition to reasonable expenses, if you are not careful, you can get trapped in the web of debt and not repaying the loan on time, the problem will increase and you get upset.

2. High Interest

There are benefits of higher credit card limit but the interest charged can be high if you do not pay the balance on time then it can be difficult to repay the balance with high interest.

3. False Sense of Security

When you get trapped in this false feeling that you have more money than you have and because of this you start spending extravagantly, in the end you get into a lot of trouble, so you yourself with a false sense of security save the

Conclusion

higher credit card limit provides financial security, emergency fund and better credit score and more purchasing power but high interest rates and false sense of security can land you in trouble so be careful with your credit limit and use it responsibly.