Question : How does a credit limit increase effect my credit score?
The limit on my department store credit card of almost 3 years has increased from $250 to $400. I'm young and have "limited" credit. Last summer my score was 637. Since then I have paid all my Credit cards off. Does the department store credit increase reflect that my credit is getting better? Also What does limited credit mean?
- asked by Megan
All Answers:
Answer #1
Yes the increase in your credit limit means thatyour credit is getting better.Limited creditsimply means the you either don't have enoughtrade lines or that the ones you do have, havebeen open long enough to have a good establishedpayment history yet.The increase will also helplower you debt to credit ratio which makes up afull 30% of your score.Keep up the good work,never use more then 30% fo your credit line in anygiven month and pay it off in full before the duedate and your score will skyrocket in no time.Youalso need to think about getting a second cardlike a Visa or Mastercard and use them the sameway.
- answered by SPIFIMAN1
Answer #2
You have little experience
- answered by Fish breath
Answer #3
If your department store is giving you additionalcredit, your score must be getting better. Payingoff your existing credit cards did raise yourscore. You can check your credit score at
http://www.creditkarma.com for free. Once you dosign up, there is a credit simulator on the sitewhere you can see how paying off your debt willincrease your score. https://www.creditkarma.com/simulator
- answered by Eliot H
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