Should you take that credit limit increase offer?

Here is what you need to know before taking your credit card issuer up on their offer

Credit card paper airplane flying above the Earth
A higher credit limit can prove beneficial, but there are also times when an increase does not make as much sense
(Image credit: Colin Anderson Productions / Getty Images)

If you have a credit card, at some point you may receive an offer from your credit card issuer to increase your credit limit (i.e., the maximum amount you can spend). The question is, do you take them up on it? 

There are a number of reasons why a higher credit limit can prove beneficial, such as the potential to lower your utilization rate and greater wiggle room in case of an unexpected expense. But on the flip side, there are certain times when an increase might not make as much sense, and you might be better off waiting and asking later.

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