“In general, the best way to improve your utilization ratio is to pay down your credit card balance and then keep it as low as possible,” says Griffin.
Although a credit limit increase is generally good for your credit, requesting one could temporarily ding your score.
Is having more credit limit good?
Impact on your credit score
The lower this rate is, the better for your score. Taking on a higher credit limit, either by increasing the limit on your current cards or applying for a new card, can help bring your ratio down, as long as you can resist the urge to spend more once you get the additional credit.
Does getting a credit limit increase affect your score?
A credit limit increase may affect your credit score.
A credit line increase “can, many times, help your credit score,” says Weeks. If you increase your credit line and keep your usage the same, you automatically shrink the utilization ratio.
When should I increase my credit limit?
You can request a credit limit increase or decrease online, and usually will receive a decision instantly. You must wait four months after your credit limit is increased before requesting another increase, and you must wait six months after a limit decrease to request an increase.
How do I increase my credit card limit?
To start the process, call the toll-free number (either posted on the back of your card or on your monthly bill) and listen to the prompts—there may be a prompt for requesting a credit limit increase. If not, choose the option to speak to a customer service representative and ask for an increased credit limit.