Has your bank upped your credit limit without asking you?

And yet, millions of credit card holders have been offered a credit limit increase in the past year – without even asking - research from Debt Advisory Centre reveals.

The move by lenders to increase limits means credit card holders run the risk of taking on more debt, especially as many people struggle to keep up with their household bills.

The study found that 4 in 10 credit card holders have been offered an increase to their credit limit the past year, despite not requesting it from their credit card company.

While the average increase was £750, more than a third of people said they were offered a credit limit rise of over £1,000.

Worryingly, those most likely to be targeted for an increase are aged between 25-34. Just over half of credit card holders in this age group said they had been offered a higher limit. In comparison, those aged over 55 are least likely to have this happen, with 60% saying their limits have not changed.

Of course, credit cards can be a great financial help when used properly and it might feel comforting to have available credit to help absorb unexpected life events. However, access to too much credit can be a way for consumers to find themselves in unmanageable debt.

Although an increased credit limit doesn’t mean the borrower has to spend up to that new level, it can bring temptation, and that can cause distress to some. A fifth of credit card users said they felt nervous that they would spend money they could not afford to repay and a further 15% said they were annoyed by the increase.

Even so, two-thirds of credit card holders accepted an increase when it was offered. Just a quarter of those given higher limits contacted their lender to reject the increase.

The offer of a higher credit limit is something of a Catch-22 for borrowers; if you never spend close to your limit you probably don’t need access to more money, while if your borrowing is always close to your limit it may mean you’re already struggling to manage your finances – which could be a warning sign not to borrow more.

And remember, being offered a higher credit limit by your credit card company doesn’t mean that you can or should borrow up to that limit. You should never borrow more than you can afford to repay.

The majority of people who come to us for debt help will have some credit card debt. If you are struggling to meet your credit card payments it make sense to seek professional debt help sooner rather than later: missed or late payments will usually mean being charged an extra fee on top of the interest that is being added your balance.

In many cases starting a debt solution can mean that your credit card provider – and other lenders- will agree to freeze interest and charges. This means that not only will your debt stop growing, but the payments that you do make will all go towards reducing your balance.

Debt Advisory Centre: 0161 871 4881