Quote:
Originally Posted by Slava
I agree with what you are saying here...except that bolded statement in some cases. If you are self-employed or thinking of becoming self employed then its definitely a good thing to have!
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You are right. It's always good to have more credit than you anticipate needing in your business, just in case the unexpected happens. In this case, I would assume we are talking about a line of credit, with a reasonable interest rate.
I was referring more to the credit limit on credit cards, where the interest rate is extremely burdensome, if you fail to pay it off monthly. I think for some, the high credit limit on cards may offer the temptation to use it, and in so doing, get more and more in the hole with time. I've seen it happen time and time again.