Credit card automatically increased credit limit??

[ourfirsthome]

After paying off all of our credit cards I still log into the accounts to make sure there is no fraudulent activity taking place. I noticed on one of the cards that they increased our credit limit by $1500 without any knowledge on our part. We didn't receive any notification of this or asking if this is something we wanted. Can credit card companies do this and is this going to hurt my credit in anyway?

I am sort of angry at this seeing we didn't authorize anything like this. Has anyone else dealt with anything like this?

[danthecashbackman]

Credit Card Limits

Increasing the credit limit is usually a good thing. Increasing it without notification is not quite OK but it might be clearly stated in the contract you signed when you filled in the application.

[disneysteve]

Our limits were automatically increased numerous times over the years. I certainly never complained. I saw it as a good thing.

[corn18]

Read your cardholder agreement. It will say what they can and can't do. Most are allowed to do a lot of things without telling you.

Raising your credit limit is neutral unless you carry a balance. Even if you use a card and pay it off every month, it can show up on your credit report and score in the credit utilization calculation. For instance, say you charge $2,000 / mo of expenses to your CC and pay it off every month. And the card you use has a $5,000 limit. Depending on timing, you could show up as having a high balance on one card. And if that's the only card you have, you may show up as a high utilization rate. Both will negatively impact your credit score. It's all about the timing of when the CC reports a balance to the credit agencies each month and when the credit inquiry is run. And that may be a perpetual issue.

Tom

[Retired To Win]

Our limits were automatically increased numerous times over the years. I certainly never complained. I saw it as a good thing.

Same here.

By the way, your credit score benefits from having a lower percentage of your available credit used up. So, as your credit limits are increased, you get that benefit.

[Blessed]

I has happened to us many times over the years. It doesnt affect us one way or the other as we always pay in full.