cancel
Showing results for 
Search instead for 
Did you mean: 

Credit line increase?

tag
Anonymous
Not applicable

Credit line increase?

Does a credit line increase effect your credit score if there isn't a balance on the account?  I just got a $5000 credit line increase on my AMEX blue account, but because I don't have a balance I'm thinking this will have little to no effect. 
Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: Credit line increase?

it helps lower your overall utilization
Message 2 of 3
Anonymous
Not applicable

Re: Credit line increase?

Depends.

As the next poster said, the CLI will lower your overall utilization. How much depends on your situation. If you have a $2000 and a $1000 CC each at high utilization, adding a couple thousand dollars in total available credit could lower your utilization significantly by making the denominator of that fraction quite a bit larger.

OTOH, if you already have several thousand dollars' worth of CCs at low utilization, the change will be minimal, as boosting the available credit "denominator" of the utilization fraction won't alter the value of the fraction significantly.
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.