Should I increase my credit card limit to raise my credit score?
I currently Have a Platinum Mastercard with no balance on it, and I want to keep it that way using it for only small purchases. My credit line is for $10,000 as of now, should I increase my credit line to $20,000 and keep no or a minimal balance on it to help my credit score. Will that be beneficial to raising scores and receiving good interest percentages on home loans and car loans in the future? I really just want to have the best score possible to save the most money later in life.
You need to do just a bit more research, and understand exactly what makes up your credit score.
Having too much of a credit limit can actually hurt your score. Unless you have a huge income you really don’t need too much limits.
But another major factor is how may different sources of credit you have. It is generally recommended that you have 3-5 credit cards.
So, I would prefer that you keep the card as it is, and get a second card with $2000. And unless you have a huge amount of income, don’t get to crazy with the credit limits.
Filed under: Raise My Credit Score
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The higher your credit limit the higher your score!
Also, the higher you balance the lower your score.
I found this info using this guide I am not at 760 credit score!
http://klooger.niesong.hop.clickbank.net/
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Actually the more credit cards you have with higher limits makes you a credit risk and can lower you credit score.
The creditors see the credit limit as possible debt. You could get the loan or whatever you wanted, max the credit cards and go for bankruptcy.
Watch how much open credit you keep on your cards. It can hurt you in the long run.
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My advice would be to keep your balance as it is. You have made it clear that you only use it for small purchases so why increase it.If your card is stolen or somebody hacks into your details they will be the winners not you. $10,000 is by far enough. Also the interest rate on credit cards is always higher than home loans etc.
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That would definetely help you increas your FICO score, try getting a free credit report make sure they are no deragotory credit as far as collections and judgements if so pay them of and dont settle for less than amount due they lower your scores, if they have been paid, try to get a copy and send them to the credit bureas and try not to exceed your balance by 30% of your credit limit….hope this helps
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No, don’t raise it. The assumption is that if you CAN borrow $20,000, you WILL borrow $20,000. While I’m at it I’m going to address some big misconceptions you have. First, the only benefit of a good credit score is to get a 15 or 30 year FIXED rate mortgage. If you are honestly serious about saving the most money for later in life, DO NOT GET car loans!!! They are absolutely stupid and will keep you poor. A car quickly drops in value–you are throwing money down the toilet. Buy a used car, several years old, with cash. A good rule of thumb is to NEVER have vehicles that are worth more than 25% of one year’s household income. That means if you are making $40,000 per year, you have a $10,000 car. If you and your wife’s total combined income is $40,000, she has a $5,000 car and you have a $5,000 car. I drive a $500 car, a 1993 Camry with 462K miles on it. Runs perfectly, BTW. All a credit score is is a rating of how well you pay off debt. I have enough cash to buy ANY car I want, I just paid cash to put my kid in college, and we went to Hawaii (again) for vacation this year. We have NO credit card debt, NO home loan, and have NEVER had a car loan. Our credit score is essentially ZERO because we have no loans and thus no history. Loans make you poor. Car loans make you poor and stupid. Don’t worry about credit scores–save your money, pay cash for everything but your house (even that if you can.,) and you will become a millionaire before you know it. You really really will. Good luck!
—>Forget the credit score, just avoid loans for stupid things.
Kent in SD
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http://www.daveramsey.com
You need to do just a bit more research, and understand exactly what makes up your credit score.
Having too much of a credit limit can actually hurt your score. Unless you have a huge income you really don’t need too much limits.
But another major factor is how may different sources of credit you have. It is generally recommended that you have 3-5 credit cards.
So, I would prefer that you keep the card as it is, and get a second card with $2000. And unless you have a huge amount of income, don’t get to crazy with the credit limits.
References :
Don’t raise it unless you have a lot of income. If they raise your limit it’s fine. A high credit score will help you with home loans and car loans and getting high end credit cards such as American Express. When it comes to a home loan you want to try and put down 20%, if you can’t 10%. If you don’t have 10% do not buy. Why do you think all these foreclosures are happening? Take a 15 year mortgage and pay it off early. After a while the tax breaks aren’t as fruitful.
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