We recently added another credit card to our household. We’re heading down to Florida for a family Spring Break. Since we’re flying Southwest Airlines for the first time, we get a big bonus by opening up a Southwest linked card operated by Chase. When I opened up the envelope and saw the details, I had a bit of sticker shock. How? They had given me a credit limit of $26,000! It made me wonder if companies are offering too much credit.
Card Limits Have Been Jumping
My wife and I have great credit scores, both well north of 800. We buy almost everything via credit card, to maximize rewards. We’re not surprised when we get approved for high limits. Still, the $26,000 limit was way higher than I’d ever seen. Still, I started thinking about how the limits have been steadily increasing each time we’ve opened a new card. These are just in the past couple of years.