A high credit limit may be beneficial or detrimental, depending on your spending habits and ability to handle debt responsibly. The more credit you have, the more flexibility you have regarding spending power, especially during financial emergencies. With more credit at your disposal, it’s also easier to maintain a low credit utilization ratio, a significant component of your credit score. However, if you’re prone to overspending, you can quickly rack up an excessive amount of debt with a generous credit limit, leaving you struggling to keep up with your payments.