Should I request an extension of my line of credit?

Have you heard about the extension of a credit line? If you have a credit card, it is very likely that you do, since financial institutions can call their clients to offer them this benefit; however, is it as good as it sounds?

Expanding a line of credit: what you need to know

Expansion of a line of credit

If you have come this far it is because you have already received the call from the bank or the communication via e-mail and you want to know if it is a good decision or not to expand your line of credit. Here we give you more details about it.

Is it good that the bank calls you to expand your line of credit?

  expand your credit line

We can say that yes, it is good that a financial institution offers you this benefit, and it is a sign that banks trust you because you have a good credit score; However, with this great power also comes great responsibility, since you must not forget that it is still borrowed money.

Tips for a positive credit line expansion

Tips for expanding your credit line

If you have decided to accept the extension of your line of credit, we leave you these tips so that your economy is not harmed:

  • By accepting, you increase your risk of getting into more debt, however, this will depend on your own behavior. If you are responsible with your expenses and manage a good personal budget, you will not have problems.
  • Ideally, the credit line on your cards should not exceed twice your salary. And that the sum of all your lines of credit does not exceed triple your salary.
  • Compare the benefits that credit cards offer you; Remember that you can cancel those that do not suit you and keep those that offer you the greatest advantages.

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