Re:It goes deeper than that (Score 2, Informative)

It goes deeper than that. Companies you have credit with will extend you more credit than you think you have (often in the form of higher limits) not just because they like you, but because it can actually lower your credit score by making you more "at risk" for being in debt because you have access to credit.

This is a common misconception regarding credit limits. larger credit lines do not decrease credit scores. An increased credit line decreases a) credit utilization for that specific credit line and b) overall credit utilization. - Two of the primary determinants of credit scores. (of course, this assumes that when the individual is offered more credit the individual does not run up more charges...)