Is is possible that a higher limit could hurt your credit score?
Posted on October 25, 2007
Filed Under Advice, Credit Rating | Comments Off
It’s possible, but it isn’t likely. The basic idea is that you want to have a good “credit ratio.” That’s the amount of available credit vs. utilized credit. That section of the score is just one section of a larger portion of your FICO called “Amounts Owed.” Amounts Owed = 30% of your FICO.
Is it a big deal to add 3k to your ratio? Probably not. It might even help. Just don’t run out and apply for 150,000 credit cards and rack up $400,000 in available credit.