Income and how it effects credit limits

[Macroman]

Many credit decisions are made with only indirect information about income. The assumption  has often been made that if you can handle the credit that you have responsibly that a little more will be a good thing.

When it comes to big decisions more information is usually requested and this is beginning to be the norm for smaller ones as well.

[Anonymous]

Maybe it's worth pointing out that the lender doesn't care whether having a given credit limit is *good* for you, they're just interested in what's good for them.  Ideally, they'd like to maximize interest fees and minimize defaults.  So, if you should happen to get in over your head, but not actually deep enough to drown (BK), then great.  I believe the large banks work to insure their exposure to defaults (the infamous credit default swap) so maybe they don't care about defaults so much, either.