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When you apply and are approved for a credit card,
the credit card issuer sets a credit limit, which is the maximum
balance you can avail on your account. Each credit card issuer has
its own standards for setting credit limits. Some factors that may
affect their decision are:
Your monthly income
Current debt
(other credit cards, car loans, etc.)
Length of residence at your current address
Home ownership
Number of
times you've applied for credit
How much credit you need or use
You may ask your credit card company to increase
your credit limit. The answer will depend on your total financial
picture. You may qualify for a higher credit limit if you always
pay on time, if your income has increased or your debts have decreased,
and if you always pay more than the minimum due or your balance
in full.
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