Credit score question
 

This question was posed to me this afternoon, I don't the answer 100%, thought someone else might...


If you had a revolving credit card, with lets say a 5000K balance and your limit is 8000K.... You are over 50% thus having a negative impact on your score. If you were to simply have your limit upped to say 12-14K, you would no longer be over 50%, so would this cause one's score to rise?

In concept it makes sense, the reason I ask is, I have also heard several things that would cause a negative impact by going this route. Thanks

Yes, raise your limit and you get down below the 50% mark, simple as that.
go to myfico.com and you can model all kinds of different scenarios.

You have to also consider that by raising the credit limit may decrease the overall percentage of utilization, you are increasing your overall debt potential. Credit worthiness is a very interesting game to play. Before we bought our house, I had to work for 6 months to build my wife's credit. I was able to bring her credit from a 540 to just about 700 in a short period of time. There is a lot to learn and I did most of my reading and research on creditforums and myfico. There are some tricks to getting credit fixed, but the key is patience and persistence. To me, it was a challenge, almost a game where the goal was to better the credit score.

Good luck. I would highly advise reading on those forums and absorbing what they have to say.

It would increase your score. You dont want to have your balance owed on credit cards to go above 33% of the total line amount.