Getting a higher credit limit? How it can trap you—and how to stay debt-free

Dubai: If your bank just offered to raise your credit card limit, you’re not alone. Many UAE residents—especially those with steady jobs or improved credit scores—find themselves eligible for a bump in their spending power. On paper, it sounds like a good deal: more flexibility, a bigger buffer for emergencies, or even better chances at scoring travel rewards.

But hold on a second. Before you say yes, it’s worth asking yourself: Can I really handle it? Because while a higher credit limit can feel empowering, it also opens the door to spending more than you should—and paying dearly for it later.

Spending trap: It sneaks up on you

Let’s say you’ve been managing just fine with a credit limit of Dh5,000. Along comes a Dh10,000 limit. Suddenly, that Dh3,000 gadget or Dh7,000 staycation doesn’t feel out of reach. But here’s the catch: it’s not “free money”—it’s borrowed money, and it comes with interest.

It’s surprisingly easy to fall into the trap. You don’t need to max out your card to be in trouble. Even using more than 30% of your available credit regularly can dent your credit score. Worse, if something unexpected happens—like a job loss or emergency expense—you may find yourself stuck repaying a bloated balance on high interest.

And if you’re juggling more than one card? The temptation multiplies, and so does the stress.

Higher limits limit your peace of mind

Credit counsellors in the UAE have seen it all. One Dubai resident who raised her credit limit to fund a wedding ended up juggling three cards, with monthly payments she could barely afford. “What started as convenience turned into chaos,” she admitted.

Another Sharjah-based expat accepted a credit increase thinking it would help during travel season. “I thought I’d repay it after bonuses, but bonuses got delayed, and suddenly I was paying just the minimum each month. The interest alone kept piling up.”

These aren’t rare cases—they’re reminders that more credit doesn't mean more control.

How to handle a higher credit limit better

If you’ve already accepted a credit limit increase—or are thinking about it—there are ways to avoid falling into a debt trap:

1. Set your own invisible ceiling
Just because your card now lets you spend Dh15,000 doesn’t mean you should. Stick to your old spending habits. In fact, pretend your limit never changed.

2. Track weekly, not monthly
Waiting for your bill to arrive before reviewing your spending is a recipe for overspending. Instead, check your credit card activity weekly. Many UAE bank apps allow you to set up alerts for large transactions or spending thresholds.

3. Budget for full repayments—not just minimum dues
Paying only the minimum might keep the card active, but you’ll be stuck in a long-term debt cycle. Aim to clear the balance in full. If that feels out of reach, you’re spending too much.

4. Use your card only for fixed, predictable expenses
Link your card to essentials like your mobile plan, Netflix subscription, or DEWA bill. This makes your monthly expenses more predictable and keeps surprises (and impulse shopping) off the card.

Feeling overwhelmed? Start small again

If you’ve gone overboard and are trying to recover, you’re not alone. Many UAE residents choose to reset with a low-limit credit card to rebuild confidence. Financial experts suggest this is a smart way to stay in the credit game without repeating past mistakes.

“Think of it as training wheels,” says Essam Kabeelali, a UAE-based consumer credit advisor. “You’ve already learned from the hard part—now, this is your chance to build smarter habits.”

Another Dubai-based advisor, Rupesh Naish, suggests making two card payments a month and using cards only for fixed bills. “It’s about creating structure. That way, you’re not caught off guard.”

Bigger limits equals bigger responsibility

It’s easy to get swept up by the convenience of a higher credit limit. But the real power lies in how you use it. If you’re unsure whether you can manage the temptation, it’s perfectly okay to say no to a limit increase—or to use only a portion of what’s available.

Remember: the goal of credit isn’t to spend more. It’s to spend smart. Whether you’re starting fresh, rebuilding after debt, or simply trying to stay ahead of bills—discipline, not limit size, will keep your financial footing firm.

In any high-spending environment, that kind of discipline might just be your best reward.