does raising your credit limit increase your credit rating? what is the fastest way to raise credit?

Answer 1

Keep your debt ratio low vs your salary, pay on time, and don't open too many accounts. One thing that brings your rating down is to have so much open credit that if it were all maxed out you could not pay it off in a reasonable amount of time. 1 or 2 accounts with high limits are OK. The fastest way is to buy a car with a bank loan and pay it off timely or early - but not so early that you don't have a couple of years of credit history. And have a credit card with a major carrier that you pay off.

The way to wreck your credit is late payment or non payment. The way to really decrease your rating is to have too many open accounts or high balances compared to your income.

Answer 2

It might help to know the basic formula of what makes up your credit score:

35% payment history
30% total debt owed vs. available credit
15% length of time establishing credit
10% types of credit established
10% inquiries and new accounts


As you can see paying on time is the most important. Since this wil be the backbone of your score, it has to be done on a consistent basis. There's really no way to deviate from this for a quick fix.

Now since the amount you owe vs. the available credit can change from month to month, this would be the only way to dynamically increase your credit. Yes, increasing the credit limit can increase your score, but you do have to keep in mind that the balances on all your other credit cards combined at 25-30% of you total avialable credit. For example, if you have 5 credit cards with a combined credit limit of $25000, the balance should be $6250 or $1250 on each card.

Answer 3

It might if you had been using more than 30% of your credit lines. Raising your score is slow paying on time for years is the best way to raise it the fastest way is to not apply for any loans or credit cards and pay off the debt you have if any. Use a credit card one in a while but not all the time and pay it off when you get the bill. You don't need to pay interest to raise your score.

Answer 4

Fast? Not really. Raising the limit? a wee bit.
Maintaining your accounts with timely payment is the best way. Duration plays into it as well.
Buy something same as cash for a year but make sure your payments are divided into 8 or 9 months rather than the year they give you. If you hit hard times you can always make the minimum payment... don't let it slip! or it hurts you.

Don't close accounts, but don't open any more than you can trust yourself with.
An ATM card does nothing for your rating! it's like writing a check so don't fall prey to that misgiving. Get a real credit account.

tip:
If your parents have a good rating and will trust and add you as a fully authorized user to their account then their credit score will come up (to your benefit) when the rating is pulled for your SSN (even if you never get to use the acct).

Answer 5

NO it does not.

Paying your bills on time, Managing your credit [debt] wisely by not screwing up and time will raise your credit rating.

You can have a $100,000 credit line and still have a low rating because you get behind in paying your bills. ANY OF YOUR BILLS. Car payments, rent, phone, utilities, credit cards especially, etc, etc.
They all have the means of reporting to the Credit Agencies/

Answer 6

Yes, as long as you don't use the credit. Your credit rating is determined by how much you owe (debt) to available credit (%). You also should not close credit cards once you pay them off, having that available credit is good for you.