4 ms·
I just don't understand how personal credit card limits can be allowed to go higher than about 10% of yearly income.
by sharemywin 3y ago
I just don't understand how personal credit card limits can be allowed to go higher than about 10% of yearly income.
- deleted 3y ago[deleted]
- BenjiWiebe 3y agoIt's nice being able to make an expensive purchase with my credit card. My savings are a lot more than 10% of my annual income.
- Spivak 3y agoBingo! I love having an absurdly high credit limit for big purchases. It wrecks my credit score for like a month but then immediately recovers once the algorithm realizes I'm still not carrying a balance.
- edmundsauto 3y agoThis might be a rational approach if your goal is to minimize defaults. CC companies, however, look to maximize their revenue - and that happens when people are over extended. Their incentive is to overextend you just a little bit, so you are constantly paying them. If you drown, they went too far and killed the golden goose - but constantly in debt is their cash cow. It also, ultimately, pays for people like me who pay on time every month and enjoy the points game.