A friend was telling me how difficult it is for her to control the urge to spend, to buy. She has a couple of credit cards that she rotates based on the cut off time and is finding it difficult to pay off the full amount for both cards every bill and some times could only manage the minimum payment since she has to take care of two balances.
For people like her who cannot control their spending, having a high credit limit on their credit card is a bad thing. Credit card issuers like that, actually, and once, I was offered a charge card which doesn't have a limit at all, that I declined.
The point is not really how high your credit limit is but how well you can stay within the limit that you can afford. People like my friend would do better using a debit card instead of a credit card where she can only make purchases up to the maximum amount that she has in the debit card.
For people like her who cannot control their spending, having a high credit limit on their credit card is a bad thing. Credit card issuers like that, actually, and once, I was offered a charge card which doesn't have a limit at all, that I declined.
The point is not really how high your credit limit is but how well you can stay within the limit that you can afford. People like my friend would do better using a debit card instead of a credit card where she can only make purchases up to the maximum amount that she has in the debit card.
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