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Hi I want to increase my credit limit on 2 credit cards but I want to know will it bring down my credit score or will it bring it up? Basically will it hurt my credit?

2007-08-22 15:57:38 · 6 answers · asked by Ali 2 in Business & Finance Credit

6 answers

Yes it will increase your scores.
You will be raising the utilization on that card plus your overall utilization.

Generally they will not pull a hard inquiry for a credit limit increase, unless you request a major increase for over $10 or $15 thousand.
For the average credit increase, a few hundred to several thousand, they will use their own internal systems or pull a soft inquiry.

Available credit does not equal debt. Though there is a "small few" archaic thinking creditors that believe that if you have available credit, you are in debt.

But, if you keep your credit in good standing, there are plenty of prime creditors who do not think that way. They would rather see someone with available credit that is used responsibly than someone with little or no credit.

2007-08-22 16:29:08 · answer #1 · answered by echo 7 · 0 0

The following 5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.

1. Re-payment history

This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.

2. Outstanding debt

The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.

3. Length of your established credit history

The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score.

4. The state of your financial accounts
How much money do you have in your bank account, your income levels, your house, car, your assets etc. comes the next. A healthy bank account reflects a healthy credit score. Experts find that credit reporting agencies give this factor 10% weight while determining your credit score. Read more from: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score

2007-08-23 00:26:56 · answer #2 · answered by Anonymous · 0 0

There are many factors that will affect your credit score.

> How many credit cards you own
> Do you pay your utilities on time
> Do you carry a balance on your loans
> Do you pay your credit card minimum or your balance in full each month
> Have you paid your bills consistently for the past 6 months
> How other creditors left comments and feedback on your credit report
> and many more

The only way to really know for sure about your credit is to get a credit report, and then monitor it every few months. You will have the power to review, request updates and make changes to your credit report, either by following good credit practices or calling on your creditors and ask them to make changes to your report.

2007-08-22 17:41:36 · answer #3 · answered by vive 2 · 0 0

Yes and no. Banks like to see that you have high credit limits when you are making big purchases. However, they don't like to see high limits because they can become afraid that you'll run up the limits.

Overall, it will help your credit more than it will hurt. My wife has several high credit card limits and has an 833 beacon score. All she does is pay everything on time. That's the key!

2007-08-22 16:11:18 · answer #4 · answered by Scott H 2 · 0 0

It really depends on how much of the available credit limit you use. If you don't use more than 30%, it should increase your score. If you go over 50%, it will hurt your score.

2007-08-22 16:33:39 · answer #5 · answered by bdancer222 7 · 0 0

YES. They will pull your credit in order to give you the higher limit
NO....it will benefit you in the future if you keep your balances 35% or less than the credit limit

2007-08-22 16:13:56 · answer #6 · answered by Anonymous · 0 0

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