I have a relatively low interest credit card whose balance is near the limit. I am focusing on paying off a higher interest credit card. I was thinking about requesting an increase in my limit for the first card, with the idea that this might help my credit score in the mid-term. At this point, I do not have a charging problem; just trying to recover from a long time ago when I did (different circumstances). Do you think this is a good idea, to request a limit increase? What percentage of my balance should I shoot for to help my score? Thanks in advance for any advice. Jeff
Hi Jeff, and welcome to CreditNet! You could try asking for a higher credit limit, but if your credit card is nearly maxed out then your credit issuer may not grant the credit limit request. I'm curious...who is the credit issuer and what credit card is it? To maximize your FICO scores, you want your credit utilization ratio to be under 30%, preferably under 10% as soon as possible. Where do your FICO credit scores stand now? Could you possibly get approved for a 0% interest credit card so you could transfer your balances and start paying off the debt at 0% interest?
It's Visa from a local credit union. I don't think there will be a problem raising it. FICO about 730.
Yea, if it's a local credit union and you have other accounts there and history as a customer, then your chances of getting the credit limit increase are certainly greater. Good luck - let us know how it goes! Also, you've got a good FICO score, so you really should consider taking advantage of a 0% interest credit card offer so you can pay off your debt more quickly. How much is the balance on the card and what's the interest rate?
$10K at 9%. But I won`t get credit utilization to 30% by raising (even doubling) my credit limit. So, there`s probably no point.
Any improvement in your credit utilization is worth it. Even if you can't get it to 30 percent right away, you should see some benefit in your FICO scores after the credit limit is increased. By combining a credit limit increase on your current card with moving some of the balance to a 0% interest credit card, you could immediately lower your credit utilization ratio as well.
