Debt Settlement
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    Applying For Credit
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    Debt Income Ratio
    Divorce and Credit
    Frequently Asked Questions
    How Credit Cards Work
    How Long Are Items Reported on Your Report?
    Separating Credit
    Types Of Credit
    What Can You Afford?
    Your Credit History
  Resolve outstanding issues
  Credit Rebuilding
  Credit Scoring Myths
  Credit Card Fraud
  Effects of Bankruptcy
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
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.
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.