I believe that in the eyes of many friends, the higher the credit card limit, the better. This is why a large number of users are very concerned about the credit card limit when applying for a credit card. Some users even refuse to activate their cards and directly apply for cancellation because they dislike the limit given by the bank is too low. So is the higher the credit card limit really, the better? The answer may not be what you think!

Perhaps for users who are relatively short of money, the higher the credit card limit, the better, so as to meet everyone's needs. However, everyone’s actual economic situation is different, so their demand for credit is also different. For users who do not have high demand for credit limits, holding a large credit card will bring pressure to themselves. Because according to the level limit of the credit card, the credit limit held by the card is limited. As the credit card limit increases, the card level and card type will be upgraded and replaced. For example, if you want to upgrade a gold card with a limit of about 20,000 yuan to a platinum card with a limit of more than 50,000 yuan, the card type you hold needs to be changed, because the maximum limit of the gold card is only 50,000 yuan. For any higher limit, you need to re-apply for another platinum card with a higher limit.

Based on the current actual situation, although the limits of these platinum cards are very high, the pressure on cardholders will also be greater. Because these platinum cards often have higher annual fees, even if they can be redeemed with points, they often cost hundreds of thousands of points. According to the accumulation of one point per dollar spent, the cardholder needs to have a large consumption demand to be exempted from the annual fee. For users with low consumption demand, it will undoubtedly increase consumption pressure. More importantly, the annual fees for some card types are rigidly charged and cannot be redeemed no matter how many points you use, so it will bring a certain amount of financial pressure to everyone. From this point of view, the higher the credit card limit, the better.

Based on the actual situation, everyone should choose the card type and limit according to their actual needs, as long as they can meet their daily needs.