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Author Topic: Accepting a credit increase- good or bad for credit score?  (Read 2130 times)

williamgazillion

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Accepting a credit increase- good or bad for credit score?
« on: June 29, 2005, 11:05:38 AM »
It might be good for my debt to credit ratio in the long run, but I think this might make my credit score drop at first.  What does everyone think?

Oneof2

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #1 on: June 29, 2005, 11:36:30 AM »
Ive been wondering the same.  Anyone?!

Intuition

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #2 on: June 29, 2005, 12:28:09 PM »
Why would it make the score drop at first?

kdeevers

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #3 on: June 29, 2005, 12:57:18 PM »
I've only heard that it makes the debit to credit ratio look better.  I haven't heard that it decreases credit score at first, unless you mean that the inquiry to determine if you are eligible decreases score.

ErinKG

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #4 on: June 29, 2005, 07:35:27 PM »
In general, a credit increase will cause your score to go up, but only if it makes a significant difference in your debt to credit ratio. If you have a high percentage (say 90%) of your credit being used and a credit limit increase will take that percentage down below 70%, you will most likely see an increase in your score of up to 50 points or so. In most cases, the inquiry will not lower your score more than a few points, so it can be a good thing to request increases. But, if you request an increase and don't get it, your score will probably drop a bit from the inquiry.

Yale College Inferno

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #5 on: January 01, 2006, 10:48:14 PM »
If the credit card company offered you a credit increase without your requesting it, your score should go up because of the higher average credit limit and lower usage ratio.
And if they offered it without you requesting it, their offer should be based on the regular access to your credit report that they get because you are a current customer, and they won't have to do the "hard" credit report pull that lowers your score.

If you request a credit increase, they will usually tell you in advance whether or not they will need to pull a new credit report.
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snikrep

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #6 on: January 04, 2006, 02:29:26 AM »
I have heard that a higher credit limit can reduce your score because they count your limit as outstanding "debt" so it basically counts against you.  I hate all this credit stuff - so mysterious.

Yale College Inferno

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #7 on: January 04, 2006, 04:59:56 AM »
I have heard that a higher credit limit can reduce your score because they count your limit as outstanding "debt" so it basically counts against you.  I hate all this credit stuff - so mysterious.

I am 99% sure that this is false. If you haven't actually borrowed the money, having the higher credit does not hurt you, especially because you haven't even added a credit card but simply increased a limit on an existing one.
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01100110011

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Re: Accepting a credit increase- good or bad for credit score?
« Reply #8 on: January 12, 2006, 12:49:29 PM »
It's not mysterious.  It's mostly transparent.

As some have said: an increase in the credit limit of an existing card will improve your score by reducing your ratio of debt-to-credit.  Just don't let yourself have a higher balance.