Question : Does having a higher credit limit on your credit cards better for your credit score?
I have 2 credit cards with a total limit of 3k, have 0 balance on them.If i ask for a credit limit increase to 6k, will that improve my credit score?
- asked by
All Answers:
Answer #1
It highly depends on your income, age, repaymenthistory. But any high limit is thought of incredit terms as being leveraged high. It is betterto stick to average limit not higher than 2salaries of yours and show a consistent timelypayment.
- answered by Abdulrahman
Answer #2
Not by itself...the real factor is your creditutilization rate, which is how much of your creditlimit that you are carrying a balance on. Ideally,you should pay off your balance in full everymonth. If you cannot, then carry no higher abalance than 25% of your credit limit.
- answered by CatDad
Answer #3
No, an increase to your limit doesn't reallyimprove your score. Your payment history and thedebt to limit ratio are the important factors. Use the cards and pay the balances in full everymonth. That will improve your score.
- answered by bdancer222
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