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roxannejs

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If I ask to raise my credit limit on a card, will my credit rating be affected?
I have a $1000 limit on one of my cards, and I just made a $700 purchase on that card. Will a request to raise my limit negatively affect my credit rating? If I transfer that a portion of that balance to a $0 balance card, will that improve my rating?

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A request to raise the limit will usually lead to a hard inquiry, which will ding your score. You might lose fewer than five points if you don't already have a lot of inquiries. But you could lose more if you've already got a lot of inquiries on your record.

However, if the company grants the credit line increase, you'll get a corresponding jump in your score. Also, when you contact the company to ask for the increase, you can ask if it's possible to get the increase with only a soft inquiry.

Transferring a portion of the balance won't help much if at all because the scoring systems look more at overall utilization than the utilization on any one card (though as a general rule, it is a good thing to balance usage between cards).

Fortunately, utilization is the one area where we can get quick, positive changes in scores simply by paying down the debt.

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