245 – Pros and Cons of Pre-Approved Credit Limits and Credit Lines
Debt Free in 30 · Doug Hoyes
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Show Notes
When I ask my clients "what happened; how did you get into so much debt?", they tell me that the credit card company offered them a credit limit increase on their credit card, so they took it. Or, they offered me a line of credit, so I took it.
Makes sense; if someone offers you something, you take it.
But is it always a good idea?
What should you watch out for?
So today on Debt Free in 30 I've invited back Diane Cunha, who was with us back on show 235 when we talked about credit cards; today we'll have a discussion about the pros and cons of pre-approved credit limit increases and lines of credit.
I'm going to explain why conventional wisdom says they are a good idea, and Diane will explain why the conventional wisdom is often wrong.