Скачать или смотреть Will Raising My Credit Limit Drop My Credit Score?

Save this 📌 Your credit limit equals the total amount of credit you have available on your credit card.

Your credit balance equals the total amount of your credit limit that you spend within a given 30 day cycle.

How much of a balance you carry in relation to your limit is called your UTILIZATION RATIO.

An excellent UTILIZATION RATIO is between 2 - 9%.

This means if you have a credit card 💳 with a limit of $1,000 and you spend no more than $20 to $90 on that card every 30 days and pay it off, that is considered excellent UTILIZATION.

Conventional wisdom says not to spend more than 30% but we’re not conventional.

So now, to answer the question, NO, a credit limit increase will NOT hurt your score. It will actually help. Especially if you have a higher than normal utilization ratio.

Say you have a limit of $1,000 and your balance is $500 then you have a utilization ratio of 50%. Which is high.

A credit limit increase to your limit of $1000 will help bring the 50% down. How?

If you maintain good payment history for over 6 months you typically can ask for an increase.

So say we get a $500 increase on our limit of $1000. Now we have a limit of $1500 and now that $500 balance equals 30% of my limit and no longer 50%. Just from asking for a limit increase.

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