Credit card companies regularly evaluate customer accounts to determine if their terms merit changes. This includes the credit line. When a credit card company proactively increases your credit limit, it means they have greater confidence in your ability to manage the account responsibly. Furthermore, such an increase does not necessitate a hard credit inquiry, as is often the case when a consumer request a higher limit instead. However, it’s important to note that just because you have more spending power available does not mean you should use it. The increase is not an indication of the issuer believing you can afford to spend the full amount each month, but rather than you can be trusted with the responsibility in emergency situations. What’s more, maintaining your existing spending habits with the higher limit will improve your credit utilization ratio. Congratulations, good luck and please let us know if you have any other questions!
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