Every once in a while, usually while I'm on the phone with my credit card company for an unrelated issue, the customer service rep will tell me that I'm qualified for an increase to my credit limit and and asks if I want her to go ahead and process it. It's not something that I request.
I know that requesting new credit can temporarily hurt your score, but I was wondering if simply accepting their unsolicited offer would also hurt it.|||It does not affect your score.
But.. you may want an increase if you ever find yourself using more than 30% of your available credit limit.
This is when the score starts reducing.
That's why they say it is best to pay your credit card in full each month...|||It could, in that it increases your potential liability to debt. A person who has a limit of $20,000 can get into a lot more financial trouble than a person who has a limit of $5,000, which is one of the factors that banks use when determining whether to extend you credit for, say, a loan or a mortgage.. Still, as long as you use your credit properly, it shouldn't have any significant impact upon your credit score.
Use your judgement about whether to accept such offers. If you think you might need it sometime (say you are planning some major purchases), it could be useful. But, if you doubt that you would ever need the higher limit, politely decline it.|||No, also by excepting an increase that you don't use will help your credit score as long as your debt to income ratio is ok.|||Yes listen to Don because he is abolutely right it COULD very well hurt your credit especailly if the creditor is looking at the report as well as a score.|||Possibly. But it is more likely to help your score.|||No.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment