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| Credit Limits |
When you are approved for credit, the creditor puts a credit limit- the maximum balance you can carry-
on your account. Your credit limit helps keep your credit card charges at a level you can pay. Each card
issuer has its own standards for setting credit limits. Some factors that their decision are:
- Your monthly income
- Current debt (other credit cards, car loans, student loans, etc.)
- Length of residence at your current address
- Home ownership
- Number of times you've applied for credit
- How much credit you need or use
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You may ask your credit card company to increase your credit limit. The answer will depend on your
total financial picture. You may qualify for a higher credit limit if you always pay on time, your income has increased
or your debts have decreased, and you always pay more than the minimum due or your balance in full.
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Information is the key to managing your credit cards well. If you're like most people, you probably haven't
read the "fine print" on your credit cards. Once you understand how they work, you'll be ready to take control.
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