Credit Cards

Credit Limit Increase

  • Last Updated:
  • Dec 23rd, 2020 3:11 pm
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[OP]
Member
Dec 26, 2010
473 posts
112 upvotes
SW Ontario

Credit Limit Increase

I received a message from Rogers indicated
As a valued Rogers Bank™ Mastercard® cardholder; you are eligible for a credit limit increase¹ to $XXXX.
Is there a good reason to do this or to do it now that I have the email?
My current limit is more than enough for what I spent each month. Just curious of any other good reason before I delete their email
7 replies
Sr. Member
User avatar
May 18, 2019
915 posts
494 upvotes
Do it now because it will help you with your credit utilization.
Newbie
Oct 7, 2020
87 posts
69 upvotes
The higher your credit limit, the lower your utilization if you are carrying a balance, and therefore the higher your credit score. There is an old adage that seems true that you are only offered credit when you don't need it, so many believe they should take the bird in the hand when offered, as there is no cost to do so.

On the flip side, some lenders are sensitive to borrowers having too much available credit, so if you are thinking about applying for a mortgage or other important loan in the near future, you may want to keep your total available credit at a reasonable amount compared to your income.
Deal Fanatic
Dec 5, 2006
9574 posts
4783 upvotes
Markham
garce wrote: I received a message from Rogers indicated
As a valued Rogers Bank™ Mastercard® cardholder; you are eligible for a credit limit increase¹ to $XXXX.
Is there a good reason to do this or to do it now that I have the email?
My current limit is more than enough for what I spent each month. Just curious of any other good reason before I delete their email
What's the utilization looks like in your current credit limit
[OP]
Member
Dec 26, 2010
473 posts
112 upvotes
SW Ontario
What do you mean by utilization? I pay in full at end of every month. How much do I use of my limit each month? Say less than 40%
Deal Addict
May 16, 2017
1600 posts
2025 upvotes
garce wrote: What do you mean by utilization? I pay in full at end of every month. How much do I use of my limit each month? Say less than 40%
Unless you pay off your cards BEFORE the statement date, the balance on the statement date will be reported and will be the number used to calculate utilization % against your total available credit.

40% is relatively high (but not bad) and unless you are going for a mortgage or some other new credit, I would go for the credit line increase (just don't plan on actually using it!).
Deal Fanatic
User avatar
Aug 24, 2016
8093 posts
8555 upvotes
The Prairies
General rule of thumb, always accept offers when given to you, as it is always harder to get credit when you need it.
It’s very easy to decrease the limit later if you decide to, or asked to by a lender as a condition of approval.
With many issuers, you can request a decrease right in your online banking.
[OP]
Member
Dec 26, 2010
473 posts
112 upvotes
SW Ontario
Thanks all. I took the increase :)

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