I am wanting to raise my FICO score. It's currently 716. I am wondering if raising my credit limit from 5k to 30k will help it or hurt it. My annual income is 50k. I plan on getting a a small car loan in a year and getting a home a few years from now. Any expert advice would be appreciated.
2007-10-19 16:48:58 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
I strongly advise against raising your credit limit in this manner. If anything, make sure you pay off your balance monthly. 716 is a very good FICO score. You will get prime rates when you go to get a mortgage and auto loan. Though I suggest that you get the mortgage first b/c the less debt, the better deal you can get. The day you close on your mortgage, go get the auto loan. That's what I did and it worked out great for me.
Also, when you are trying to get a mortgage, the bank will not only look at your score, payment history, etc., but also the amount of credit you have available to you. If they see that you have a cc w/ $30k available to you that could hurt you. Think about it from the bank's perspective - what if I give this person a $200k mortgage and they go max out their $30k card - are they still going to be able to pay their mortgage?
So, NO do not raise your limit to $30k or any other amount. Just keep paying it off monthly and save your $$ so you can get the best deal on your future mortgage. Good luck!
2007-10-19 17:27:59 · answer #1 · answered by Michelle 3 · 1⤊ 0⤋
If your credit history is good, the creditor will probably grant a reasonable increase in credit limit, but 5K to 30K is a bit extreme.
2007-10-20 00:14:19 · answer #2 · answered by npk 7 · 1⤊ 0⤋
Do you have any balance on this line of credit? You don't say what type of credit this is, but if you have 1/3rd of your credit balance used and make your regular payments on time you should be fine> I would also subscribe to a credit monitoring service and check your credit reports often for errors. 716 isn't bad. Go to the website below! I know it's called Easy Credit Repair but there is something for everyone!
2007-10-19 23:57:42 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It isn't the limit. It's how much balance are you carrying. Pay the credit card off in full every month. That will give you the best debt to available limit ratio. If you pay your credit card in full every month, they will automatically increase your limit every 6 months or so.
Your credit card company isn't likely to make such a huge jump in your limit. And if you plan on opening several more credit cards accounts to get that limit, you will ding your score from all the credit inquiries in a short period.
Best way to improve your score is to pay everything on time.
2007-10-19 23:55:56 · answer #4 · answered by bdancer222 7 · 0⤊ 1⤋
You cannot raise your limit from 5K to 30K all at once. I doubt anyone gets to 30K ever actually, on one card anyway.
2007-10-20 03:43:58 · answer #5 · answered by Josh 6 · 0⤊ 0⤋
My advice would be to use credit wisely and sparingly. You don't need a credit limit on one card equal to 60% of your income. That's absurd.
Just use credit when you absolutely MUST and pay it off each month!
2007-10-19 23:53:55 · answer #6 · answered by Anonymous · 1⤊ 0⤋