Credit Limits: How They Keep You from Chasing a Dangerous Pot of Gold

Happy St. Patrick’s Day!

rainbow

Come on, admit you hunted for gold too…

Many an Irish-American child has caught a glimpse of a rainbow, hopped on a bicycle and tried to get-rich-quick by finding a pot of gold at the end. Alas, my adventures in gold chasing ended after a few miles of intense cycling when I realized my goal would forever remain elusive. Unbeknown to me, though, another fictional pot of gold existed under the guise of credit limits.

While it’s far easier to convince a bank to offer you a credit card than to come across a leprechaun’s fortune, the money is just as fictional.

The rest can be read over on DailyFinance.

[Image taken from Rocky Raybell on Flickr]

Posted in Credit, DailyFinance Tagged with: ,
10 comments on “Credit Limits: How They Keep You from Chasing a Dangerous Pot of Gold
  1. We have between $150K-$200K of available credit on our cards at any given time, and they STILL won’t stop doling it out. I just signed up for a Marriott Rewards card the other day, and they gave me a 22K limit. It’s insane!
    Holly@ClubThrifty recently posted…Europe for Cheap: How to Travel Abroad for $200My Profile

    • Broke Millennial says:

      That reminds me that I need to sign up to be a Marriott Rewards member, it seems like they have a pretty great program. I’ll have to look into the card.

  2. The comments were too ridiculous on Daily Finance so I decided to comment on here haha. I think credit limits are a good start, but they really only help you avoid a major catastrophe (i.e. 200k of credit card debt) versus creating true limits. As you mentioned, it’s easy for most early 20-somethings to access $10k+ in credit. That’s definitely more than most people can truly budget for. So, as I’m sure you’d agree, it’s up to each individual to act responsibly.
    DC @ Young Adult Money recently posted…Is There Such a Thing As Luck When It Comes to Finance?My Profile

    • Broke Millennial says:

      Ah yes, the good old DailyFinance comments. Thanks for posting here :) And yes, absolutely up to the individual. It’s just sad how often it gets folks into trouble.

  3. I’ve never had a credit card with more than a $5k limit. But I typically only charge a few hundred dollars during a billing cycle and pay it off immediately.
    Stefanie @ thebrokeandbeautifullife recently posted…Breaking Through Your Own Glass CeilingMy Profile

    • Broke Millennial says:

      I’m the same way. I only charge a few hundred bucks and pay it right off. Keeps that utilization rate low!

  4. I consider it best to ignore credit offers. I pretend they don’t even exist. And since I’m age 24, this applies to social security as well! ;)
    @WilliamLipovsky, First Quarter Finance recently posted…Wednesday Posts / Social Media / AdvertisingMy Profile

    • Broke Millennial says:

      Agreed with social security (I’m 24 too). I can’t afford to ignore credit cards though because I have no debt and it’s my only way to be establishing credit history at the moment.

  5. Try reading Retirement plans for dummies. “Tis the fools gold chasing after ze pot of gold over the rainbow”. You have a point, how come banks and other financial institutions are quick at giving credit cards than loans?
    Jeff @Project Ikonz recently posted…Need a loan?My Profile

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