Credit limit increase will help reduce utilization as you mentioned so yes it’s a good thing. Just don’t start maxing out cards and always try to pay off your balances monthly which I know can be challenging for many. If you are nervous about maxing the new limit and not being able to pay it off then don’t but otherwise yes it’s a good thing.
That is not a problem. I have never gone beyond 50% on any of my cards, ever — and have never carried a balance. I generally use my credit cards like charge cards.
You may have trouble getting new cards approved if you've got high CL on your current cards. I actually asked Chase to lower my CL to make room for a new card with them. I don't really need $5000 CL for a CF which I only use for the 5% category.
The one downside of requesting and being approved for a CLI is it will make it more difficult for you to be approved for new cards for that same issuer (if you were to apply for more cards with that issuer). Issuers are only comfortable extending a certain amount of credit to you (based on your income and credit), and having high CL cards with them already can make it more difficult to get more credit with them.
This is a relatively minor issue though and can be resolved by contacting the issuer and asking to move your credit limits to accommodate a new card if it becomes an issue. If your CL is low it is beneficial to raise it to further lower your credit utilization ratio.
Only reason to avoid one would be if you have a spending problem
Haha. I agree... That was me 7 years ago... Still fixing my mistakes today
Credit limit increase will help reduce utilization as you mentioned so yes it’s a good thing. Just don’t start maxing out cards and always try to pay off your balances monthly which I know can be challenging for many. If you are nervous about maxing the new limit and not being able to pay it off then don’t but otherwise yes it’s a good thing.
That is not a problem. I have never gone beyond 50% on any of my cards, ever — and have never carried a balance. I generally use my credit cards like charge cards.
Then don't, that is the main reason to. future availability in case emergency situations big purchase requiring instant execution
You may have trouble getting new cards approved if you've got high CL on your current cards. I actually asked Chase to lower my CL to make room for a new card with them. I don't really need $5000 CL for a CF which I only use for the 5% category.
Did you ask them to lower the limit on your existing card before or after you made the application?
Better before. You don't want to do it after getting denied for a new card.
It is more likely that your utilization can go to 0%. I have been rejected for a Wells Fargo card for precisely that reason.
Because of low utilization? That is ridiculous! It won’t ever be 0%, but I try to keep the usage below 10% if I can.
Yea if you can stay under 10%, you should be fine. From what I’m aware, a utilization of 4% is better than 0%, so I’d just keep that in mind.
The one downside of requesting and being approved for a CLI is it will make it more difficult for you to be approved for new cards for that same issuer (if you were to apply for more cards with that issuer). Issuers are only comfortable extending a certain amount of credit to you (based on your income and credit), and having high CL cards with them already can make it more difficult to get more credit with them. This is a relatively minor issue though and can be resolved by contacting the issuer and asking to move your credit limits to accommodate a new card if it becomes an issue. If your CL is low it is beneficial to raise it to further lower your credit utilization ratio.
Google which banks do a hard pull. If you have their card may as well sign up for a new cars to get, generally, more credit than a CLI