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It's Raining Credit

February 3rd, 2007 at 10:14 am

Now that the holiday season is over everyone must be back at work over at the credit card companies - they've started sending out offers to increase my credit limits. Yesterday I received an offer to increase the credit limit on one of the CCs I used for a 0% balance transfer for the past 6 months, from $6500 to $9750. And then today I received an offer from Citibank to increase my line of credit limit from $35K to $45K. I'll accept both these credit limit increases as it doesn't hurt to have more credit available (except when applying for a home loan, where they count all the available credit limits as if you had borrowed that amount). But I won't be using any the CC as I have another one for my day-to-day purchases which I pay off in full each month. I may use the Citibank line of credit account at the end of the financial year to prepay a year's margin loan interest (to get an immediate tax deduction on the interest), and then pay off this balance over the following few months.

2 Responses to “It's Raining Credit”

  1. Gerard Says:
    1170548526

    Hi EW

    I was wondering if you could do a post on how the credit system works in Australia... i.e. do you need to have a credit card to get a good interest rate for a car loan etc/if the situation is similar to the US. I've been reading a lot of US literature but being in Sydney, I don't how things work here...

    Good work so far!!!

    Cheers
    Gerard

  2. Personal Finance Guide 101 Says:
    1170830378

    Hi Ralph,

    You got a nice plan.......you want to increase the credit limit but don't want to use at end of financial year.

    I liked this one.

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