Will it help my credit if I get a limit increase?
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I’ve had 2 secured credit cards with a total CL of $580 for the past 1 1/2 years. My credit score is 637, and it’s pretty much stuck there because of past circumstances. I was wondering if a CLI can actually help my credit, or if it is only based on your credit to debt ratio?
It may
A CLI on its own won’t help your credit score. The only way it can help is if your utilization is higher than 15%, which I assume it is. If it’s higher than 30% than you can expect noticeable improvement.30% util out of $580 CL is ~$180. This means that if your average CC balance is more that $180 – your credit score is negatively affected, even if you pay the statements in full!
Increasing your CL can lower your util (assuming you don’t use the card more) and will certainly have positive effect on your credit score.
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