Should I allow my bank to increase my credit limit on my credit card?

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      Anonymous
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      I have two credit cards, one with an interest rate of 19.5% and a credit limit of $4000 (visa) with no annual fee, the other (mastercard) with $1400 credit limit and 8.5% interest rate. The bank wants to increase the limit on my visa by up to $8000, but I’m not sure about it, though right now I am carrying a balance on the card. I’d like to raise my credit limit on my mastercard, but unsure if it would affect my nice interest rate (it is a rewards card with NO annual fee). I have had my mastercard since I was 18 (I’m 25 now) and they haven’t really increased the limit much since then, but did give me a rewards card when they phased out the other card I had which was a basic mastercard. I did go onto my online credit card site for my mastercard and said they could increase my limit as it is an option that I can check off.

      I have a balance on my visa that I can’t pay off in full yet, should I transfer some of that to my other card? I’ll only be carrying that balance for at most 2 months longer (it’s about $2100 right now and has only been on the card about a month and I already paid $1000 toward it).

      I tend to use my visa more often since its linked to my debit card and chequing account, but like to use my Mastercard for somewhat larger purchases because of the rewards points (but I don’t use it that much because of the low limit). I tend to pay off my balance in full and only recently have had a balance because I am on leave from my job (for another week and a half) and had to put money down for our honeymoon. But I normally pay it off in full before the end of the month.

      What should i do?
      The only other debt I have is $8500 for a Government student loan (I’m in Canada), which is NOT in repayment right now because I am still registered as a full-time student (I’m doing my M.Sc. thesis which you only can do on a full-time basis at my university even if you are not really working on it full-time). I have to stay registered as a student until I defend my M.Sc. thesis. My loan is not in repayment status until 6 months after I am officially done school, but it starts to accumulate interest once I am done school.

      I have never had any other debt beside this stuff. No car loans, no mortgage, no nothing.

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