Credit line increase- Yes or No?

[Anaya_1de]

Hello everyone,

I'm new here and also somewhat new to the whole Credit Game. I'm working on building a good credit history, but sometimes it's a little intimidating because I don't want to do anything that hurts my credit score.

Okay, let me give you a little backround information on myself. Well so far I have two credit cards. One is with Bank of America ($300 limit) and one is with capital one ($500). The latter one was originally my husbands but then he put my name on it as well. Each account carries a balance of $80 (I'm trying to pay that off completely). No late payments on either one. We also have a mortgage and a car payment each months. And that's it debt wise.

Anyway,today I found out that bank of america would be willing to give me a credit line increase to up to $3300. And now I'm not sure if this would be a good idea. I just heard that it can look bad on your credit history if you have too much open credit. But I guess, I don't really have a lot. I was actually planning on paying both balances off and not really use them much. Except every now and then to show some account activity. I just think it would be good to have $3000 in case of an emergency. But I'm also worried that it might tempt me in spending more... :

Can anyone break down for me what the pros and cons of a credit line increase would be? And is it possible to decrease a credit line, in case you ever have too much open credit?

Thank you, I would really appreciate your help and input.

[Ima saver]

I actually think it helps to have a larger credit line, but keep your balance very very very low. Your credit score is based on the ratio of how much debt you have to how big your line of credit it. Best thing to do is accept the larger credit line, and keep your balance paid off in full each month! That is what I do.

[Anaya_1de]

Thank you for your fast reply. I think I will get the credit increase, I just won't use it.

[Ima saver]

Smart thinking, your credit score will affect so many aspects of your life, this should improve it!

[CJsoccerchic]

Liek Imasaver - I too would go with the higher credit line. I have a 3500 line and I'm keep the debt to less then 400 and pay it off monthly - although, I wonder, does that hurt your score when you pay it off monthly instead of the minimum? I've never paid interest on a credit card in my life - is that good?

[Anaya_1de]

I heard that it was good to pay off the balance in full each month. But then again I hear so many different things, you never know what's true and what's not.

[CJsoccerchic]

SO VERY TRUE!!!! ACK!!! We need a credit bureau agent on this website to answer all our questions!!

[katwoman]

Absolutely go for the higher credit line!

If Cap 1 doesn't give you a credit line increase, ditch the card. It's set up in such a way as to hope that you do go over their paltry limit and then will not be eligible for other, better credit cards thus insuring that you're stuck with them. If you don't believe me, google "Capital One" and read other boards to find out the whole story.

The good news is you're in a great position to apply for a American Express card since you are relatively new to credit! Amex is very good to credit neophytes plus it looks good if you have a prestigious card. I've said it before and I'll say it again.....you are the company you keep. If you are creditworthy enough for Amex, you will be looked upon favorably by other prime card issuers.

[CJsoccerchic]

ACK - I have tried SO hard to get a AMEX card - they are NOT easy! Does anyone KNOW a easy way to get one of their cards?

[Crystallas]

If you find it hard to get an Amex, you might want to research getting a secured card from them. Ive seen them for as low as $25 with some very nice features. Once your foot is in the door, and you have had them for long enough to establish a line through their reports, you can easily get any Amex that you applied for before. Depending on how your credit is now, and how old you are, this could be the solution you need. But do remember, applying for credit will lower your score if you're rejected. So I wouldnt apply often.