Will a credit limit increase affect my credit score?

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by sibyl , in category: Banking and Credit , 9 months ago

Will a credit limit increase affect my credit score?

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1 answer

Member

by alan , 9 months ago

@sibyl 

In general, a credit limit increase can have a positive impact on your credit score. This is because it can improve your credit utilization ratio, which is the percentage of available credit you are using. When your credit limit increases and you maintain the same level of spending, your credit utilization ratio decreases, which is generally viewed positively by lenders.


Additionally, a credit limit increase may also reflect positively on your creditworthiness, as it shows that your credit issuer trusts you with a higher limit. This can have a small positive effect on your credit score.


However, it's important to note that a credit limit increase alone is unlikely to have a significant impact on your credit score. Other factors, such as payment history, length of credit history, and types of credit used, play a more substantial role in determining your credit score.