Making on-time payments on all of your debts and maintaining low balances on your credit cards are two proven paths to a good credit score. There’s one more step you can take to improve your credit score quickly: Increasing your credit limit can boost your credit score.
When you ask your existing creditors to increase your credit line, you’re simply requesting that make more credit available to you. Doing this can have a positive impact on your credit utilization ratio, which is one of the most important components of your credit score. Credit utilization ratio is second in importance only to payment history, and it accounts for 30 percent of your score in the FICO formula.
How to get a credit limit increase
You can contact your credit card companies and ask for a credit limit increase. (A lot of banks even let you make the request online, so you won’t have to wait on hold with customer service.) This type of request doesn’t usually involve a hard pull to your credit, which means it probably won’t hurt your credit score. If a credit limit increase is granted, you can expect a score boost to follow.
Connect with Scorewell today to discuss how our service can help you achieve your highest possible credit score.