Why do Credit Card Companies give such HUGE Credit Limits?

I can%26#039;t believe some of the limits some of my credit card companies put on my cards. I have this Amex that I%26#039;ve had for 12-14 years, it started with 4K- or 5K or something..it%26#039;s up over 100K, the other one is 80K. I have a Chase card with 45K and a Citi (DP) card over 40K. It%26#039;s not like I use them all the time...maybe 1K a Month then pay in full before the statement arrives..I pay on-line these days. What do they think I%26#039;m going to do BUY YACHT!!! I sat down the other day out of curiousity and added up my credit limits on all my cards..it came to $960.500...almost a million dollars!! This is crazy, then they wonder why stupid people get themselves in credit card debt...I%26#039;m very responsible with my credit but I could easily see how some would go out and buy everything in sight because they can...but them can%26#039;t afford to pay it back. It just seems to me to be to much temptation for people 19-30 who love %26quot;things%26quot; and can%26#039;t help themselves. I think some blame some be the CC companies

Why do Credit Card Companies give such HUGE Credit Limits?

Credit limits don%26#039;t effect your credit scores, being need the max limits do. But as you stated, you%26#039;re not even close.

I am almost in the same situation as you as far as ridiculous limits. They increase the limits hoping you will use it one day and thus earn interest from you. It%26#039;s like the rebates you have to mail in after purchasing an item - between 70 - 80% of people never send them in. They are hoping you use them.

I accidently dropped a credit card at work one day and an 18 year-old employee found it. I didn%26#039;t notice it, but he decided to look up my personal info on our business computer and called the CC card company. He found out I had a $72,000 limit and was brazen enough to ask me about it. I told him %26quot;That%26#039;s what happens when you manage you money and pay your bills on time%26quot;. He was from a poor family that didn%26#039;t teach him much and show him about finances. He then stated %26quot;you could go out a buy a new car!%26quot; (I drive a 10 year old VW). I retorted by stating %26quot;Yes, but my car is paid for and runs great! What%26#039;s the point going into debt for something that depreciates so much?%26quot; He stated %26quot;Well, you have the money. If it was me, that%26#039;s what I would do%26quot;. I then ended the conversation by saying %26quot;That%26#039;s why 18 year-olds don%26#039;t get big credit limits - they don%26#039;t have enough income or experience managing their finances%26quot;. I then fired him two days later for misuse of the company computer systems for accessing my personal data - he signed a %26quot;computer usage agreement%26quot; at hire that included misuse of other employees personal information contained within the company servers.

Why do Credit Card Companies give such HUGE Credit Limits?

I agree. It%26#039;s like the saying goes %26quot;Never take financial advice from a broke person%26quot;. I rarely give out specific financial advice as I know what works for me, but it may not work for others. And I%26#039;m far from broke. I will help people understand credit issues. Report It

Why do Credit Card Companies give such HUGE Credit Limits?

You can visit http://www.debteraserzone.com and find very useful tips and several articles on credit card related matters. Report It

Why do Credit Card Companies give such HUGE Credit Limits?

They want you to get in so deep you can never pay them off. THis way they can keep charging intrest and apply very little to the principal

Why do Credit Card Companies give such HUGE Credit Limits?

I just call them and tell them to get those limits down.

I don%26#039;t accept the creeping limits.

I think companies probably operate to make profit.

Should the government regluate this more to protect people?

I think you should get involved in policy-making or start a credit card company because this that you describe is a big problem and it is ruining a lot of people%26#039;s financial life because of their lack of self-discipline. another solution might be start teaching about this stuff from 1st grade on so the kids wouldn%26#039;t be so dumb about it.

Why do Credit Card Companies give such HUGE Credit Limits?

The larger the limit, the longer it takes to pay off and the more over exorbitant interest rates they can charge!

Why do Credit Card Companies give such HUGE Credit Limits?

I have a few credit cards, but only use one main card. So I got all the other card limits decreased to like $500 or $1000 so it won%26#039;t affect my credit rating as much. I can%26#039;t believe you have almost a million $ in credit, that is crazy!!

Why do Credit Card Companies give such HUGE Credit Limits?

Credit card companies decorate the debt trap to look it more attractive (for getting in, of course)

Why do Credit Card Companies give such HUGE Credit Limits?

People like you who pay off their debt on time are known to credit card companies as %26quot;dead beats.%26quot; Why? Because they can%26#039;t make any money off you!

Instead, credit card companies make their money off people who only pay the minimum payment. This allows their high interest rates to really kick in, ensuring that the borrower continues to accumulate debt, locking that person into a lifetime commitment with that creditor.

So, the higher the maximum limit, the more likely a person deep in debt will avail themselves of the limit, pushing them further into debt, assuring that the borrower never escapes from the habit of paying high interest payments.

Why do Credit Card Companies give such HUGE Credit Limits?

You need to take a peek at your credit score. I%26#039;m going to bet this extremely high credit limit you have is putting a dent in it.

The reason is because potential lenders will look at your credit report, see that you have $1M in available credit, and it will scare the pants off them! No way are they going to give you credit with that!

Yeah, it may look impressive to some people, but it%26#039;s hurting your credit score. Give the CC company a call and get them to lower it.