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New Visitor
Posts: 1
Registered: ‎11-03-2009
0

Credit card limit

What happens to your FICO score if your card holder increases your credit limit? Does the higher limit create a greater liability for potential amount owed and therefore lower your score?
Contributor
Posts: 79
Registered: ‎10-09-2008
0

Re: Credit card limit

No.  If anything, it will lower your utilization and raise your score.
Moderator Emerita
Posts: 3,091
Registered: ‎08-09-2008
0

Re: Credit card limit

Hi Jay23! Welcome to the myFICO Forums! :-)

 

The potential impact of a credit line increase on your credit score depends upon other aspects of your credit profile. For example, as the previous poster mentioned, if you're carrying balances a CLI may reduce your utilization-- an appreciable reduction might cause your credit score to rise. If the CLI came at the cost of a hard INQ, the damage and gain might be offsite for no change, as another example. You might also see no gains if you're a PIFer and have no balances. At any rate, a CLI won't hurt your FICO score.

 

If you haven't done so already, read Credit Scoring 101, linked in my sig line. It's a great place to get a firm understanding for what impacts (and how) your FICO score.

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