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Frequent Contributor
momof2
Posts: 478
Registered: ‎03-23-2008
0

credit limit increase how does affect score?

I noticed last night that my credit card went from a $300 credit limit to a $500 credit limit, will my FICO score go up because of this increase?
FICO2/10=EQ= 564

FICO2/10=6012/10-FACO TU 578;3/10=643
Super Contributor
MidnightVoice
Posts: 8,161
Registered: ‎03-25-2007
0

Re: credit limit increase how does affect score?

Only if it significantly reduces your util%
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: credit limit increase how does affect score?

And as an example, if that were your only CC, and you have no others, and the balance was at $200, then your old utilization would have been at 67% ($200/$300). With the CLI, the new rate would be 40% ($200/$500). In this example I'd guess at an increase of 15-25 points.
 
Conversely if this is one of many cards with a balance of again $200 with a total CL on all cards of $3000, then your utilization was 6.7%. With the $300 CLI, util% is now 6.1%. There would likely be no score increase at all.
Frequent Contributor
momof2
Posts: 478
Registered: ‎03-23-2008
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Re: credit limit increase how does affect score?

to IIecs---------- I have only one credit card, my balance before the increase was $268/$300 so now that it is $268/$500 what is my util now? I dont know how to mathmaticlly figure that out, can you tell me how?
FICO2/10=EQ= 564

FICO2/10=6012/10-FACO TU 578;3/10=643
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: credit limit increase how does affect score?



momof2 wrote:
to IIecs---------- I have only one credit card, my balance before the increase was $268/$300 so now that it is $268/$500 what is my util now? I dont know how to mathmaticlly figure that out, can you tell me how?


Good. Easy to calculate. Divide $268 into $300. This is .893 or 89.3% utilization under the old CL. Under the new, divide 268 again into $500 which equals .536 or 53.6%. I'd guess the increase to your FICO score would be around 20-30 points.
 
Caveats: 1) the balance listed on your FICO CR is the one used for any calculation. Usually, the reported balance is the same as the one on your statement date. 2) if you have any CC CO's, then those may be factored into your utilization too.
 
You can increase your score even further by 1) adding another card or even a store card (improves credit mix) and 2) reducing your balance under 10%.
Super Contributor
MidnightVoice
Posts: 8,161
Registered: ‎03-25-2007
0

Re: credit limit increase how does affect score?



momof2 wrote:
to IIecs---------- I have only one credit card, my balance before the increase was $268/$300 so now that it is $268/$500 what is my util now? I dont know how to mathmaticlly figure that out, can you tell me how?


it was 268/300*100 = 89%
 
It is now 268/500*100 = 54%
 
A significant reduction that might help your score.
 
Carring a lower balance would help even more - less than $50 reporting is good
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Valued Contributor
ngerasimatos
Posts: 1,278
Registered: ‎06-01-2007
0

Re: credit limit increase how does affect score?

53.6%
Try not to become a man of success but rather to become a man of value
Albert Einstein 1879 - 1955

700 Club
Frequent Contributor
momof2
Posts: 478
Registered: ‎03-23-2008
0

Re: credit limit increase how does affect score?

thank you all for your help in figuring the calculation
FICO2/10=EQ= 564

FICO2/10=6012/10-FACO TU 578;3/10=643
Member
mattymule
Posts: 6
Registered: ‎03-25-2008
0

Re: credit limit increase how does affect score?

It certainly can and yes it does have to do with your uti.  However I would be cautious on your increases to your scores.  I just increased one of my CL from 500 to 750 and it didn't move my score at all.  I opened another card up for 300 and it increased my score 9 points.  I did not pass over any threshold by opening this card, meaning I did not lower my uti under 50% or under 30% or even 10%. I am in the mid 20's and stayed there even with the new cards.  So just don't expect to much at one time but every little bit counts.  Yes I definitely believe you can reach your goal by the end of this year.  Be prudent with your spending, keep your uti low and as low as possible, and also I do not know what your credit looks like but if you have charge offs or collections, paying those off can make a difference in your score.  Not all the time but they certianly can.  I paid off a Verizon collection and it increased my TU score 40 points but my EX and EQ did not move at all so it just depends.  But keep on working at it and you will hit your goal.  Good Luck.  Well luck doesn't have much to do with it just diligence and hard work. 
 
Matt
Regular Contributor
RAISEUP
Posts: 107
Registered: ‎04-30-2007
0

Re: credit limit increase how does affect score?

Matt, did you pay off the verizon collection as in PFD, i'm trying to figure out the best approach to take care of them
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