Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
KennQ

0 Contributions
0 People Helped
Raising Credit Limit Over paying down a card over 30%
I was under the impression that if my utilization is under 30% of my limit on a credit card it would bring my score up. I have a card that I know will take me a couple months more than I’d like to pay off so I asked to have my limit raised and poofff, my score went down by 20 points. Explain that one to me please. If I'm credit worthy of a decent increase why would my score go down? How long before it goes back up?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
36 Contributions
14 People Helped

Credit Increase

Your credit increase may or may not have caused a hard inquiry.  That would've been the case with my Chase account; I asked if raising my limit would constitue a hard inquiry, the rep said yes, and I told them no thanks.

The hard inquiry would definitely hit your credit score hard early.  However, the long-term effects should have subsided and stabilized.

Your credit score might have been good enough to get you the raise, but it would definitely take a hit if the credit bureaus think you're extending your limit just to get under the 30% ratio.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.