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Is it better for my credit score to increase my existing credit line or to open new lines of credit?
Im trying to figure out if it would be more beneficial (credit score) for me to be opening up new credit accounts or just ask for increased limits on the ones I already have.
Asked by
dborowik
1 year ago
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Ask for increased limits first. Opening a new account always results in an initial drop in score because of the hard pull. Also, focus more on paying down existing debt and paying it on time.
robert0380 1 year ago
Are you looking for a short-term or long-term benefit for your credit score?
As robert0380 points out, you will take a hit on your score when you open a new line of credit. However, after 12 months in good standing, you will probably start seeing a boost, and the additional line of credit will help your score more than a credit line increase on one card.
However, if you are looking for a more immediate boost, whether or not increasing your credit line will boost your score depends on your utilization. It is based on percentage, not on amount. If you have a low utilization now, getting a credit line increase will not help your score much, if at all. If you have higher utilization (above 30%), you may see a positive impact, but again, it depends on your current utilization vs. your utilization after a credit line increase.
phnxangell 1 year ago