More Americans Seek Credit Limit Hikes to Cover Holiday Spending Despite Record Card Debt
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More people are requesting credit limit increases to cover higher holiday spending and make up for lower emergency savings. Approval rates are rising.
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Credit card debt has reached record highs and people have tapped out credit cards to cope with inflation and stagnant wages.
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Asking for a credit line increase can help your credit score by lowering utilization ratio. New cards often lower score.
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Banks have gotten stingier about issuing new cards given rising delinquencies. Rejection rates on applications have gone up.
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Higher limits can help your credit score if you don't use extra credit to take on more high-interest debt. Goal is to keep spending and balances the same.