Credit card: Should you accept offer to raise credit limit?
The increased credit limit can act as a source of emergency fund during financial shortfalls or due to financial exigencies arising from job loss, illness, accident, disability, etc
Credit card issuers initially sanction lower credit limits to new card applicants. They are offered higher credit limits later on, as and when card issuers are assured of their repayment behaviour and income growth. However, by accepting such offers of higher credit limits, there can be a fear of falling into a debt trap following higher credit card spend.