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7 Comments
#1 by Dillwad Slutbucket on February 17, 2008 - 8:48 pm
I don’t know for sure, but since the credit report doesn’t show why the credit was increased, it seems to me that it wouldn’t affect your score. Except that the less you use of your balance, the better your score.
You should be careful though, that you are requesting only the amount you can pay back, and the amount that you can thoughtfully use.
Request for increase of credit limit does not lower or affect your scores. However, I would advise that you thread this carefully. Its no fun being indepted and before long you’re realise that repayment takes longer than you’ve spent.
It depends on a lot of other factors but it won’t effect your score in a major way either direction(up or down).
Since you requested it they may pull your credit which will show as an inquiry which will cause your score to go down a bit, but it also increases your credit usage ratio so that would take it up a bit.
Sometimes the credit card companies will pull a hard inquiry before approving or denying a CLI (credit limit increase). That will create a small ding. Always request that they give you a CLI without pulling a hard – it doesn’t always work but sometimes it does.
One major factor on your scores is credit utilization.
For example – you have a credit card with a $1000 limit. You have a $500 balance on the card. You will be at 50% utilization, which is a score killer.
You request a CLI and the card company gives you a $1000 increase for a total CL of $2000. Now that brings you to 25% utilization which, to FICO, is “much” better and your scores will rise.
P.S. Having available credit DOES NOT EQUAL DEBT !!!!
As long as you use credit wisely it will work for you by allowing you to have lower interest rates for credit cards, major loans, lower car insurance rates, etc. .
#1 by Dillwad Slutbucket on February 17, 2008 - 8:48 pm
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No. But try this: Run up your card but pay the monthly balance. Then they will up the credit without you asking.
#2 by Don't Know on February 17, 2008 - 11:57 pm
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I don’t know for sure, but since the credit report doesn’t show why the credit was increased, it seems to me that it wouldn’t affect your score. Except that the less you use of your balance, the better your score.
You should be careful though, that you are requesting only the amount you can pay back, and the amount that you can thoughtfully use.
#3 by Olesya C on February 21, 2008 - 10:39 am
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it will increase (!) your score because it will favorably affect your debt to asset ratio.
#4 by SG Elite on February 24, 2008 - 5:20 am
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Request for increase of credit limit does not lower or affect your scores. However, I would advise that you thread this carefully. Its no fun being indepted and before long you’re realise that repayment takes longer than you’ve spent.
#5 by OC1999 on February 27, 2008 - 3:14 am
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It depends on a lot of other factors but it won’t effect your score in a major way either direction(up or down).
Since you requested it they may pull your credit which will show as an inquiry which will cause your score to go down a bit, but it also increases your credit usage ratio so that would take it up a bit.
#6 by Mariposa on March 1, 2008 - 11:00 am
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No. It will actually increase your score if your spending habits don’t change. You will be using less of your available credit.
#7 by echo on March 1, 2008 - 11:31 am
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Sometimes the credit card companies will pull a hard inquiry before approving or denying a CLI (credit limit increase). That will create a small ding. Always request that they give you a CLI without pulling a hard – it doesn’t always work but sometimes it does.
One major factor on your scores is credit utilization.
For example – you have a credit card with a $1000 limit. You have a $500 balance on the card. You will be at 50% utilization, which is a score killer.
You request a CLI and the card company gives you a $1000 increase for a total CL of $2000. Now that brings you to 25% utilization which, to FICO, is “much” better and your scores will rise.
P.S. Having available credit DOES NOT EQUAL DEBT !!!!
As long as you use credit wisely it will work for you by allowing you to have lower interest rates for credit cards, major loans, lower car insurance rates, etc. .