Will my credit score increase if I simply increase my credit limit without adding any more debt?

Question

I've read in several places that one of the major credit score factors is the debt usage ratio. If I increase my credit limit without charging anymore to the card then the ratio will decrease. However, increasing the credit limit just feels like the wrong thing to do. Anyone have any experience/advice here? Thanks so much in advance.

Thanks for your help everyone. I have two existing cards that i've had for three-four years that I will probably request credit increases on. Do you think it would be a problem if I requested increases at the same time on both cards?

Answer 1

If your talking about existing credit cards then the inquire on your credit would be a soft one and will not effect your score.

If your talking about new credit cards, then you would take a small hit for the inquire and for opening a new account.

If it is existing accounts and you are responsible with your spending and will not be tempted to run out and spend your new credit, then the answer to your question is yes.

Answer 2

Yes but you will lose points for the inquiry to raise your limit. Double edged sword here. Adding a new card will not help either as it is newly acquired credit. Best thing to do is pay down the balances on the cards you have, besides an increase in credit is an increase in temptation to use it, and that would decrease your score even more

Answer 3

The major factor for a FICO score is the usage of available credit. You can increase that percentage by paying down your debt or increasing the amount of available credit-or both. Either way it will increase your score-all other things being equal.