{"id":494265,"date":"2022-09-19T12:02:00","date_gmt":"2022-09-19T09:02:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/"},"modified":"2022-09-19T12:02:00","modified_gmt":"2022-09-19T09:02:00","slug":"nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/","title":{"rendered":"#NerdWallet: Will the economy get worse? Consider raising your credit limit before it does."},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a407e66d9544\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a407e66d9544\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#%E2%80%9CNerdWallet_Will_the_economy_get_worse_Consider_raising_your_credit_limit_before_it_does%E2%80%9D\" >&#8220;NerdWallet: Will the economy get worse? Consider raising your credit limit before it does.&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#Increase_available_credit_on_credit_cards_while_your_accounts_and_the_economy_are_still_in_good_standing%E2%80%94heres_how_to_do_it\" >Increase available credit on credit cards while your accounts and the economy are still in good standing\u2014here\u2019s how to do it.<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#Keep_credit_cards_open_and_active\" >Keep credit cards open and active<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#Consider_requesting_a_credit_limit_increase\" >Consider requesting a credit limit increase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#Diversify_credit_limits\" >Diversify credit limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#Manage_credit_limits_strategically\" >Manage credit limits strategically<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-will-the-economy-get-worse-consider-raising-your-credit-limit-before-it-does\/#Melissa_Lambarena\" >Melissa Lambarena<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CNerdWallet_Will_the_economy_get_worse_Consider_raising_your_credit_limit_before_it_does%E2%80%9D\"><\/span>&#8220;NerdWallet: Will the economy get worse? Consider raising your credit limit before it does.&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Increase_available_credit_on_credit_cards_while_your_accounts_and_the_economy_are_still_in_good_standing%E2%80%94heres_how_to_do_it\"><\/span>\n  Increase available credit on credit cards while your accounts and the economy are still in good standing\u2014here\u2019s how to do it.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001198204\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001198204\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em>This <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/increase-credit-limits-now?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1228980\" class=\"icon none\"><em>article<\/em><\/a><em> is reprinted by permission from <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\"><em>NerdWallet<\/em><\/a><em>.\u00a0<\/em><\/p>\n<p> Relying on a credit limit in a shaky economy is the equivalent of expecting a weak bridge to weather a storm and carry you to survival.<\/p>\n<div class=\"paywall\">\n       It\u2019s not uncommon for credit card issuers to minimize their risk by lowering credit limits or closing accounts when there\u2019s potential for economic distress. Credit card issuers took these actions in the 2007-09 recession and early in the COVID-19 pandemic, according to a 2022 report by the Consumer Financial Protection Bureau, perhaps due to changes in credit profiles, internal account performance metrics or shifts in the issuer\u2019s risk management policies.<\/p>\n<p>Even as an uncertain option, a credit limit is still a bridge worth preserving to supplement or back up an emergency fund, especially before a potential recession. There isn\u2019t a foolproof strategy to prevent an issuer from lowering credit limits or closing accounts, but some actions may minimize the impact to your wallet and credit scores.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Keep_credit_cards_open_and_active\"><\/span><strong>Keep credit cards open and active<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>In March and June 2020, many accounts owned by cardholders, even those with high credit scores, were closed due to inactivity, according to a special issue brief by the CFPB that same year. Inactive cards aren\u2019t making the issuer money in fees, so they pose more risk to the issuer during tough times.<\/p>\n<p>It\u2019s worth keeping credit cards open and regularly charging planned purchases to give issuers one less reason to touch your account, but that might not be enough.<\/p>\n<p>For Timothy Barnes, an auto mechanic based in Rocky Mount, North Carolina, it didn\u2019t matter that he was still employed in late 2020 with active accounts in good standing. A major issuer closed several of his accounts, scr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ing over $17,000 in available credit.<\/p>\n<p>\u201cIt was one day of buying something online and the credit card was declined,\u201d Barnes says. \u201cThey said it was a risk, but I didn\u2019t even miss one single payment.\u201d<\/p>\n<p>Previously, some lenders didn\u2019t provide cardholders with reasons for credit limit reductions. In May 2022, the CFPB\u2019s advisory opinion on the Equal Credit Opportunity Act affirmed that lenders must provide an \u201cadverse action notice\u201d explaining the reason for unfavorable decisions.<\/p>\n<p><strong>Also see:<\/strong> \u2018Forget about chasing rewards and seek the lowest interest rate possible\u2019: Credit-card rates near peak not seen since 1996<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<h6><span class=\"ez-toc-section\" id=\"Consider_requesting_a_credit_limit_increase\"><\/span><strong>Consider requesting a credit limit increase<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Consider requesting a higher credit limit\u00a0on frequently used credit cards if you\u2019re paying on time and not using more than 30% of your available credit.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/report-income-credit-card-application?utm_campaign=ct_prod&amp;utm_content=1228980&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">Income<\/a>\u00a0is another factor considered by issuers for a credit limit increase, says Derek Mazzarella, a certified financial planner at Glastonbury, Connecticut-based firm Gateway Financial Partners.<\/p>\n<p>\u201cIf your income has gone up since you last filed for the credit card or you haven\u2019t updated that in a while, I would make sure your income is actually updated,\u201d Mazzarella says.<\/p>\n<p>Some issuers allow you to update your income by logging in to your account, and they use that information to increase the credit limit, no request necessary. Credit scores could temporarily drop when requesting an increase, depending on the issuer, so ask how credit is impacted before doing so.<\/p>\n<p>One of the biggest factors in credit scores is\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/30-percent-ideal-credit-utilization-ratio-rule?utm_campaign=ct_prod&amp;utm_content=1228980&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">utilization<\/a>, or how much credit you have available to you compared with how much you\u2019re using. A credit limit hike can increase the available credit and help build credit scores. The opposite is true if a credit card issuer hacks away at a credit limit later \u2014 scores will take a hit. One issuer\u2019s reductions may even have a ripple effect on other credit cards\u2019 limits.<\/p>\n<p>A credit limit increase may lessen the impact of a future reduction, but it won\u2019t safeguard against an account closure, which can also cause scores to drop.<\/p>\n<p>\u201cMy credit changed pretty much after they did that, but before that it was exceptional,\u201d Barnes says.<\/p>\n<p>Weigh the potential pros and cons if you\u2019re applying for financing in the near future to determine the best course.<\/p>\n<p><strong>Check out: <\/strong>You work hard to pay off debt. Here\u2019s the surprising secret that keeps you from backsliding as the economy slows<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Diversify_credit_limits\"><\/span><strong>Diversify credit limits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Barnes had multiple credit card accounts with one issuer because it was convenient. Thankfully, he also had an emergency fund and a few other credit cards that withstood the economic storm of 2020.<\/p>\n<p>Consider building other bridges by opening a credit card at a different institution if you don\u2019t have one already. If you tend to overspend, stick with a lower credit limit to rein in spending, Mazzarella says.<\/p>\n<p>A\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/will-new-credit-card-hurt-credit-score?utm_campaign=ct_prod&amp;utm_content=1228980&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">new card application<\/a>\u00a0may cause credit scores to drop temporarily, but likely not as much as a credit limit reduction. For flexible spending, look for a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>-purpose credit card that\u2019s accepted by most merchants.<\/p>\n<p><strong>Also see: <\/strong>5 ways your credit cards can help you fight the pain of inflation<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Manage_credit_limits_strategically\"><\/span><strong>Manage credit limits strategically<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Use your available credit with caution so it stays manageable. If possible, keep finances under control by:<\/p>\n<ul class=\"articleList\">\n<li>\n      Managing current credit cards responsibly before opening another.<\/p>\n<\/li>\n<li>\n      Spacing credit card applications by six months or longer to lessen the impact on credit scores.<\/p>\n<\/li>\n<li>\n      Using less than 30% of available credit.<\/p>\n<\/li>\n<li>\n      Paying more than the minimum on time.<\/p>\n<\/li>\n<li>\n      Having an emergency fund to avoid relying on credit cards.<\/p>\n<\/li>\n<li>\n      Creating a plan to pay off large purchases before adding to a card\u2019s balance.<\/p>\n<\/li>\n<li>\n      Asking credit card issuers to keep your credit limits or accounts open if they intend to take actions on them.<\/p>\n<\/li>\n<\/ul>\n<p><strong>More From NerdWallet<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/4-travel-card-perks-that-may-not-be-as-valuable-as-you-think?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1228980\" class=\"icon none\">4 Travel Card Perks That May Not Be as Valuable as You Think<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/how-to-manage-a-credit-card-amid-mental-health-struggles?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1228980\" class=\"icon none\">How to Manage a Credit Card Amid Mental Health Struggles<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/scarcity-money-mindset-amid-recession?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1228980\" class=\"icon none\">A Scarcity Mindset Can Cost You Mentally and Financially<\/a><\/p>\n<\/li>\n<\/ul>\n<p><em>Melissa Lambarena writes for NerdWallet. Email: mlambarena@nerdwallet.com. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>: @LissaLambarena.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Melissa Lambarena\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Melissa_Lambarena\"><\/span>Melissa Lambarena<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7124-87C7DABAD9C3%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;NerdWallet: Will the economy get worse? Consider raising your credit limit before it does.&#8221; Increase available credit on credit cards while your accounts and the economy are still in good standing\u2014here\u2019s how to do it. This article is reprinted by permission from NerdWallet.\u00a0 Relying on a credit limit in a shaky economy is the equivalent&#8230;<\/p>\n","protected":false},"author":1,"featured_media":494266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-625117\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-494265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/494265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=494265"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/494265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/494266"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=494265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=494265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=494265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}