Showing results for 
Search instead for 
Did you mean: 

Credit Limit Increase


Credit Limit Increase

I am still new to credit and have only have my first card open for about 6 months and have had student loans are about the same time. I have never kept a balance on my card and this month they increased my credit limit from $500 to $750. I've read you are supposed to use a certain percentage of your available credit, but will it have a negative affect if I still only charge a very small amount on the card(approximately $120) each month? If it makes a difference I have a capital one card. Thanks Smiley Very Happy

Message 1 of 4
Valued Contributor

Re: Credit Limit Increase

The more you use the card and and pay it off, the better your payment history will look, and with most CCC's (not Cap1 tho) they will usually reward you for using your card heavily by giving you CLI's every 6 months, but not Cap1 they rarely, and I mean rarely give CLI's


Run as much thru the card as you want, just be sure to pay almost all of the balance a day or two before the due date and leave a $15 balance to report to the CRA's, this way you will show some util, which is better than 0% util. And 1 day after the statement cuts, pay that remaining 15.


You just don't want to charge 735 on a card with a 750CL and pay just the minimum due and let the card report at 97% util every month, that's not good.


Starting Score: 583
Current Score: 3-03-12-EQ-802 TU-806 EX-798 (EQ Beacon 9: 804 Lender Pull 3-08-12) All FICO's
Goal Score: 800+ across all three

Take the FICO Fitness Challenge

Message 2 of 4
Established Contributor

Re: Credit Limit Increase

Adding to Mustang's excellent advice -- you also don't want to carry a balance. It does not help your credit history at all, and it will cost you useless money.

SevenNEW, Garden Nerd - In the Garden until 2015!
4.2K 10K 24.6K
Message 3 of 4
Established Contributor

Re: Credit Limit Increase

As Mustang stated above, leave a very small balance reporting for utlization.  Much better than letting it report as zero each month for optimal fico scoring.

Current Score: EQ: 828, EX: 833, TU: 820 Citi TY Premier WEMC 46.5, (Since 1983)Discover 15.6k|BOA WMC 30.5k|Barclays Juniper Rewards 15k|Barclays Amex 20k| Cap One QS WMC 15K|Chase Freedom VS 19.3k|Citi Dividend WEMC 25k|FNBO 15.5k|CSP 22.1K|Chase Marriott 31.3k|Citi TYP 20K|Citi DP 16.5k|Macys 5k|Sams MasterCard 15k|Barclay Arrival Plus WEMC 18.7k|Chase IHG WMC 26k|Citi Double Cash 10k|Chase MileagePlus Explorer 14k|Amex Everyday 16.2|BBVA Amex 22.5k|Total Rewards VS 12.5k|SGV 10K|Venture 12k|BOA Virgin Atlantic WEMC 11.2K|MB Amex 9.5k
Message 4 of 4