Hey everyone.
Since the amount of available credit vs. debt is weighed heavily in the FICO score, should I add more money to my secured credit card line? Currently, I have a secured card with a limit of $300 and they offered me an opportunity to increase it to up to $5,000. Of course, that's cash for them, because I'd have to come up with the $4700, but was just wondering if anyone else has done this and it increased your score. I was thinking about adding $1000 to increase my avail. credit and keep my credit utl. to less than 10%. Thanks.
@MissExcellentCredit wrote:Hey everyone.
Since the amount of available credit vs. debt is weighed heavily in the FICO score, should I add more money to my secured credit card line? Currently, I have a secured card with a limit of $300 and they offered me an opportunity to increase it to up to $5,000. Of course, that's cash for them, because I'd have to come up with the $4700, but was just wondering if anyone else has done this and it increased your score. I was thinking about adding $1000 to increase my avail. credit and keep my credit utl. to less than 10%. Thanks.
Yes. Increasing your CL will help your UTIL and help your score (as long as you keep your revolving debt under 10%).
Do you have any other debts at the moment? If so, I'd say that $1k would be better spent paying down existing debt, as oposed to granting what's probably a interest free loan to your secured card issuer.
Do you have an emergency fund? is it at least 6 months of your living expenses? If you don't have any debt, I'd look to padding a liquid emergency fund before increasing the limit on a secured card.
If you're debt free, and you've got at least 6 to 12 months worth of living expenses at your finger tips, then increasing the amount of your secured credit line is probably a good deal, if you're a PIFer, anyway. IMO! 
Yes, I do have some other debts (less than $3,000) at the moment and I'm working on my emergency fund.
Good advice. I'll work on paying down the debt and increasing the emergency fund.
Thanks.
I would do 1 of 2 things. I would take the money and pay down other CC's giving me a lower utilization, or I would place the funds in a high interest bearing savings account and allow it to draw interest.
I currently have a few savings accounts drawing in good interest right now. I'm sticking to my plan of paying down current debt and building my emergency fund.
Thanks to all.