Today I received a letter from the bank that issued my credit card. Basically it says that, since I'm "one of their best customers" my credit (card) limit has been increased.
This is the second time that they have done this. The first time I didn't give it much thought. I'm a legal resident in the United States, so I knew that I would need to build a "credit history" for myself here and I though that it was a good sign that they would increase my credit limit after a couple years.
After this happened the second time, I wonder if there could be a "catch" on this. I mean, what is my bank's real motivation for allowing me to spend more money. Are the any pitfalls (besides the obvious "don't get into too much debt. Don't buy things that you cannot really afford") I should avoid?
- I'm a legal resident in the US.
- I have had this credit card for around 4 years now.
- I make a sensible use of my card. I never had an issue paying my balance.