Taking More Pre-Approved Credit or Not For Credit Score
Financial Management

Taking More Pre-Approved Credit or Not For Credit Score

financial literacy

Today as I was doing my regular banking I got a message saying that I was given an offer that per-approved my credit limit by another $8000 or so. At first I was thinking why in the world would I ever need this much credit? I usually just use it for everyday items such as groceries to take advantage of cashback rewards. I can’t imagine doing something like buying a car on a credit card.

The only reason that I actually even ponder about it is because technically if you have more credit then your debt ratio will be even smaller each time you use it. For myself I always pay it off fully and so that should technically make it appear on paper that I am managing my spending even better in terms of the percentage of credit I am using.

On the flipside some people would say if you take so much credit then should you ever need a different type of credit then one would wonder why you even need so much or if you can manage even more. At this point for my scenario I only see it as a potential positive in the sense of a credit score.

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