Jul
If the individual had good credit and is in good standing with all credit card companies.
Answer:
Yes and no. When they FIRST increase it, your score will drop a few points … maybe 5 - 10 points … this is because that potentially makes you a larger risk of using the credit irresponsibly.
HOWEVER, if you keep your balances low (or better yet no balance), and use your credit wisely, your credit score will go up in 3 - 6 months because the ratio of the amount of credit you’ve outstanding vs. the total amount of credit available will be much smaller.
In other words if you owe $5,000 and have $20,000 available your debt ratio is 25%. If they increase your available credit to $50,000 and you still owe $5,000 your debt ratio drops to 10%. The 10% looks much superior on a credit score. But … initially there will be a SMALL drop … not enough to worry about too much.
Answer:
Yes, if you’re financially responsible and will not use all the credit you’re given, it is advisable to increase your limit each 6 months.
30% of your credit score is your debt utilization ratio. Ratio of your available credit vs. debt. Most advisors state keep the limit to 10 times your normal credit card balance or keep the balance under 10% of your limits.
Common myth: Too much credit is bad. Wrong. The more credit you’ve available and the less you use shows that you are financially stable and are living below your means and use credit wisely.
Maxing out your credit can lower your score at times 80 points. Its the same if you’re maxed out with $20k in debt or maxed out with your only $300 dept. store card.
That said, raising limits and/or paying off credit cards is the easiest and fastest way to change your credit score. Note, increasing your limit will normally cause an credit inquiry. This is a very small negative, but short term event that usually has a 2-10 point effect. Your benefits of a high limit will out weigh this substantially.
Answer:
A number of these responses are correct. Bottom Line:
- Don't spend more than you’ve
- Keep your balances low in relation to limits
- Try not to add new credit unless you need to
Remember credit “repair” agencies are scams. Any errors you can fix on your own. You can't “fix” corrected notations.
If it's too good to be true, it is
Answer:
Good question…
but I don't think i can answer that question. I'il just try to help you,so follow the link below and you'll come to a site that has all the info you need :
http://the-credit-score.blogspot.com
http://secured-credit–cards.blogspot.co…
http://the–credit-cards.blogspot.com
http://pay-pal-merchant.blogspot.com
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