New Delhi, Aug. 31 -- Credit cards have nowadays become essential and convenient financial tool, offering flexibility while making purchases. At times when carrying cash is not only cumbersome but also comes with risks of theft, credit card becomes a saviour for expensive purchases.

Credit card companies often offer to extend credit limit, allowing their customer's to spend more. Listed below are 4 reasons why one should increase their card limit.

1. Current financial situation, such as income, expenses and debts

2. Credit utilisation ratio and credit score

3. Spending habits

4. Future financial goals

5. Credit card interest rate and fees

6. Creditworthiness

1. Promotes overspending

2. Attracts penalty in case of late payment

3....