{"id":3371,"date":"2016-04-06T13:06:48","date_gmt":"2016-04-06T13:06:48","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=3371"},"modified":"2020-07-13T22:33:17","modified_gmt":"2020-07-13T22:33:17","slug":"increase-credit-limit","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/increase-credit-limit\/","title":{"rendered":"Will Credit Limit Increases on My Credit Card Hurt my Score?"},"content":{"rendered":"

\"credit<\/h2>\n

The relationship of credit limits and the balances on your lines of credit account for almost 1\/3 of your credit scores.\u00a0 So let’s show you why an\u00a0increase credit limit helps.<\/p>\n

Increase Credit Limit\u00a0May Help Credit Scores!<\/h2>\n

Many are scared to death of the consequences from an increase credit limit.\u00a0 But most of the time the reasons are only misconceptions.\u00a0 Now if you think you will use all of the limit and carry a balance, don’t increase your limits.\u00a0 But if you are just worried that raising your limits looks bad on your credit report, then this article will hopefully change your thinking.\u00a0 When you raise your credit limits on your cards and your balances stay the same, your credit scores <\/a>should grow!\u00a0 Better credit scores means better chance of approvals.\u00a0 Plus it means\u00a0better interest rates<\/a>.\u00a0 So let’s go over why credit limit increases are a good thing for you…<\/p>\n

Why Will Credit Scores Increase By An Increase Credit Limit?<\/h2>\n

When you raise your credit limit on your revolving<\/a> accounts, your utilization rate \"creditdecreases.\u00a0 What does that mean?\u00a0 First of all, revolving accounts are credit cards or lines of credit.\u00a0 Also it means that you are using a smaller percentage of your credit limits.\u00a0 So this makes you look better to the credit bureaus<\/a>.\u00a0 The credit bureaus see that you are better able to manage your debts or lines of credit because you are not maxed out.\u00a0 How important is this?\u00a0 The utilization of credit lines makes up 30% of your credit score!\u00a0 35% is how well you pay bills on time so that shows you how important it is.<\/p>\n

Best Way to Increase a Bruised Credit Fast<\/h2>\n

Which do you think is the fastest way to increase your credit scores if you have some credit issues in the past?<\/p>\n

    \n
  1. Buy a car and finance it with a loan<\/li>\n
  2. Get a loan with a finance company and make payments\u00a0just to build credit<\/li>\n
  3. Stop using credit until the old credit rolls off your report<\/li>\n
  4. Open a couple of credit cards & use correctly<\/li>\n<\/ol>\n

    \"increaseToo many people choose the first 3 options.\u00a0\u00a0Usually the reasons for choosing the first 3 is because of being given bad advice.\u00a0 Or just not understanding\u00a0how credit scoring works.\u00a0\u00a0So the best way to establish credit is #4) Open a couple of credit cards\u00a0BUT only if used the correct way.\u00a0\u00a0The best way is to charge a small percentage of the credit limit on something you need\u00a0like gas, pay the bill off in full on-time, and repeat.\u00a0 By doing this you\u00a0have on-time payments without borrowing money and paying interest for no reason, plus you\u00a0receive a lot of points for owing a small percentage of your credit limits.\u00a0 Remember, 30% of your score is based on this ratio so spend wisely and watch your scores go up!<\/p>\n

    Other Benefits of a Credit Limit Increase<\/h2>\n

    One benefit of having a higher credit limit is for an emergencies.\u00a0 If something comes up where you need to make a charge and your credit limit is too low, this can put you in a bind.\u00a0 So by having a higher limit, you have access to emergency funds.\u00a0 Remember though, just because the credit is available doesn’t mean you have to use it.\u00a0\u00a0Higher limit credit cards should also increase your chances of having perks or rewards such as gas discounts, gift cards, or airline miles<\/a>.<\/p>\n

    By showing your great experience in using credit cards, other credit card companies take notice of this and so you will receive offers for possibly better cards.\u00a0 This could also be a bad thing with extra junk mail of course.\u00a0\u00a0Last but not least is\u00a0that higher credit scores doesn’t just help you get better interest rates or qualify for a house.\u00a0 Many other areas of your life depend on credit such as insurances, employment, and there is no telling what else.<\/p>\n

    So next time you are asked by your credit card company about having your credit limit increased, more than likely the best answer is “yes please!”.<\/strong><\/em><\/p>\n

    Related Resources:<\/strong><\/p>\n