Improve Credit score/increase credit limit

[MJtwelve]

Hello,

I wanted to ask our credit savvy minds here a few questions..

I am trying to improve my credit (it's not terrible, it is considered "good" I believe..) I am doing the common sense things of making sure I hit my payments, etc, and also trying to make sure I only utilize 30% of my total available credit. My limits are quite low, on one card I have a $750 limit and on the other $500. I tried to increase my limit and was declined, which I know is a blow to my credit score (which is a little confusing to me because these limits are low and I know someone making about the same as I do who has a much higher credit limit, and my credit score is "good") and with limits this low sometimes it can be easy to "trip" and utilize a little more than 30% of my available credit, thus decreasing my score even more.

The question I wish to ask.. what would be the best way to go about raising my credit score, and limit at that? I have considered getting another credit card because I think I could get approved for one with a $500 limit or so, but I already have two and I feel if I got a third it might hurt my score.

Any and all insight is greatly appreciated, Thank you

[~bs]

Hello,

I wanted to ask our credit savvy minds here a few questions..

I am trying to improve my credit (it's not terrible, it is considered "good" I believe..) I am doing the common sense things of making sure I hit my payments, etc, and also trying to make sure I only utilize 30% of my total available credit. My limits are quite low, on one card I have a $750 limit and on the other $500. I tried to increase my limit and was declined, which I know is a blow to my credit score (which is a little confusing to me because these limits are low and I know someone making about the same as I do who has a much higher credit limit, and my credit score is "good") and with limits this low sometimes it can be easy to "trip" and utilize a little more than 30% of my available credit, thus decreasing my score even more.

The question I wish to ask.. what would be the best way to go about raising my credit score, and limit at that? I have considered getting another credit card because I think I could get approved for one with a $500 limit or so, but I already have two and I feel if I got a third it might hurt my score.

Any and all insight is greatly appreciated, Thank you

How old are your credit lines? They'll usually review your account yearly or so and determine if it warrants an automatic credit increase. Some cards don't really do this though. If you always keep your lines below 50%, always pay on time, etc. and your credit is still low, seems like you got the cards recently?

If you already got a request declined, i think you'll have trouble getting some of your other cards to increase the limit. Are you a student? Income plays a BIG factor in how much credit card companies will extend to you.

Requesting a 3rd card would hurt your credit in the sort term, but should improve it in the longer, as it shows up on the credit report as additional available credit.

[MJtwelve]

The one I was trying to get the increase on is 2 years old, which I guess might be a bit too recent?

Yeah, since I got a request declined I am not going to try and get an increase again for a while, as I know the second might likely be declined and therefore hurt my score even more.

I'm not a student anymore, but I was when I got the card.. I wonder if that might have anything to do with it? I didn't "notify" them of my new income and job, which is a lot higher than I was making while going to school but I think they'd see that in my credit history? (Since companies do credit checks these days along with background checks..)

[~bs]

The one I was trying to get the increase on is 2 years old, which I guess might be a bit too recent?

Yeah, since I got a request declined I am not going to try and get an increase again for a while, as I know the second might likely be declined and therefore hurt my score even more.

I'm not a student anymore, but I was when I got the card.. I wonder if that might have anything to do with it? I didn't "notify" them of my new income and job, which is a lot higher than I was making while going to school but I think they'd see that in my credit history? (Since companies do credit checks these days along with background checks..)

You should have requested a credit increase based upon the fact that you have a steady job and higher income instead of a merit based increase. They don't take into consideration your job automatically. You have to provide them with that information.

[disneysteve]

with limits this low sometimes it can be easy to "trip" and utilize a little more than 30% of my available credit, thus decreasing my score even more.

This is a big red flag. If you can't consistently keep track of how much you are spending and charging on your card, you shouldn't be using a credit card.

Here's what I would suggest. Set up some regular, recurring, fixed amount monthly bill to be charged to the credit card (as long as the bill is less than 30% of your limit). Then put the card away and don't use it at all for anything else. Pay the bill in full and on time every month... and wait. Part of your credit score is age of your history and only time can fix that.

[ccole]

Before you seek an increase, you should evaluate why you want it. Only ask for an increase if you can pay your balance in full every month; don’t do it if you’re going to depend on that extra credit to make ends meet.

Figure out which card you want raised. Not all, but many issuers will respond to a request for an increase by checking your credit. Make sure your credit is decent. If you have blemished credit, it might seem reasonable to try and get an increase to burnish your score a bit, but this is risky.

Don’t ask too soon. Most credit card companies will automatically review your credit after about six months or so of card membership.

Don’t ask for too much.Usually they’re going to base their decision on your credit as well as what kind of a line increase you ask for. You can’t expect typically to double your credit line.

[grumpter]

Go from 30% to using 10% or less of your limit. Either way you already have the cash to cover purchases correct? After 6 months maybe a year call them again and ask them to raise limits (but they will probably raise your limit before you ask them to).