topic Re: Credit Line Increases on CC's in Credit Cards

Credit Line Increases on CC's

Anonymous — Thu, 12 Mar 2009 00:38:03 GMT

If you request a credit line increase on your existing credit card....Does it lower your score?
I am asking because one of my credit cards that I haven't used for some time lowered the credit limit down to a low $300.....thus increasing my debt to available credit ratio (currently 35%)......Would this be a good idea to request a credit limit increase?

Re: Credit Line Increases on CC's

phxphun — Thu, 12 Mar 2009 01:24:41 GMT

I can tell you it did for mine just recently. I requested a limit increase on my MC and they ran a credit check, even though I've had a perfect payment history with the card for several years. (BTW, they never told me they would run a credit check). So the credit check now appears as a 'negative factor' on my EX score.

I don't know how to tell exactly how much it influenced the total score because there are other 'positive factors' too.

Re: Credit Line Increases on CC's

Schoolbuskid — Thu, 12 Mar 2009 01:30:00 GMT

It can be a negative factor only if its a hard pull, other words resulting in a credit check, just as phxphun said.

You need to make sure you are keeping your credit cards active by using them.You dont have to charge alot on them maybe buy a drink, piece of gum, something small! This way you will be more likely to retain your high credit lines!

Good Luck!

Message Edited by Schoolbuskid on 03-11-2009 06:30 PM

Re: Credit Line Increases on CC's

Anonymous — Thu, 12 Mar 2009 02:14:59 GMT

Thanks and thanks to phyxphun.
I did recently purchase something small ($33) and will not request an increase. Given the economic crisis, I think a hard inquiry will be in play if I requested a credit line increase to bring it back to original level. Maybe in the future they will increase my limit voluntarily (...like Bank of America did extensively, and later sent me a letter increasing the rate if I made new purchases.......which I declined to accept keeping my rate the same.....and now just paying down the balance). I come to the conlusion that credit card companies can "own" you if you are not careful.......regardless of good credit and good responsibility.....