A major factor in your credit score is the amount of credit you have compared to the amount of debt you have. It’s called your “credit utilization ratio.” It’s not good when the amount of debt is close to the amount of credit and the best way to fix that is to pay down your debt. BUT, if you’re not in a position to do that and move the top number of the ratio, maybe you can move the bottom number. How? A CreditCards.com poll found that 89 percent of people who asked for a credit limit increase were granted one. A couple of keys: one, only ask for an increase on ONE credit card, because they will likely check your credit to do it, and that so-called “hard pull” can actually ding your credit just a little bit. The other rule is that once you have that new, higher credit limit you CANNOT use it. The whole point is to have credit you do not use. That will LOWER your credit utilization ratio and, in a couple of months, RAISE your credit score.
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