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Question By
movingup2014

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Should I accept a line of credit increase in order to improve my score?
Hi All; I've been working to improve my credit and I seem to be stuck in the 580's for the past couple of months. I was up to 620 and had to use one of my cards and I'm assuming that's why my score went down. I need to get a new phone and a computer in the next month or so, so I'm trying to better my score.

Current Scores: TransUnion 586 Equifax:569
Credit Card #1 - $1,900 Limit / $1,695 Balance
Credit Card #2 - $500 Limit / $400 Balance

I'm eligible for a credit increase on CC # 1 for $200. If I take the increase & don't use the card will this improve my score? I am also going to focus on getting the 2nd card balance down as well.
If I were to pay $100 on one of the 2 credit cards, which one do you think would have the most positive impact?

Thanks in advance for your input!! Have a great weekend!

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If the credit line increase comes WITHOUT a hard inquiry, then by all means take it as it will lower your utilization. High Utilization is your problem, so yes you need to get the cards paid down. If you have a hundred dollars to put toward one card, put it toward the five hundred dollar limit card.

Reply by
movingup2014

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Thank you for your input!!

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Well credit utilization is 30% of your  credit score.  You should try to stay below below 30%.  Right now you are way to high.Using 75% of your credit is considered using 100% of your credit.  To keep your score up you need to keep your balance down. 

So yes the $200 would help your score.  I would also put the $100 towards the same card.

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