Is this really true? I have 3 credit cards, of which 1 has a significant balance. However, on the other card, which I pay in full every month, the credit limit went from $6000 to $6600.
“Is this really true?”
Depends on the issuer. I suspect that the large credit card issuers will be the ones to cut credit lines first. Of course that in turn reduces FICO scores, which allows the credit card companies to jack up interest rates.
The large credit card companies really are utter scuzzballs. But I digress...
Of course getting out of debt is usually the best strategy. In the mean time, you might want to look into getting your credit card through a good credit union and cutting up the rest. They’re less likely to cut you off at the knees by jacking up the rate or cutting your credit limit with little notice.
My credit limits have been going up as well, but I’ve taken steps lately to kick my up credit rating, such as refinancing higher-interest debt to zero interest cards (makes it look like I’ve paid off big debts) and getting a couple of 30 day past-dues eliminated off my credit report. I’ve asked a couple of lenders for higher credit limits, which they’ve granted almost immediately. That makes my actual debt to total possible debt look very good, and I’d be pretty surprised at this point if any of my creditors tried to cut back my limits.