Can I boost my credit score by increasing my cc limit? (rate, accounts)

[cyberous]

When I had a mortgage my credit score was bouncing around 850.

I am now debt free with one credit card. Unfortunately my score has dropped to around 750. I would like to get my numbers back into the 800's (don't need it, just want it)

My credit card limit is 24K, and avg use is about 5k a month (paid off monthly) or 20% usage

Experian says 6% or less, so if I bump my limit up I can achieve that 6% right?

So who will issue a credit card for 80K with no fees? Or will this cause other issues, what am I missing?

[rjm1cc]

Yes you will improve your score.
I would also get several more cards. Maybe get a second no fee card now. Then in a couple of months ask for the limit increase and then another card in a couple of more months.

[cyberous]

Thanks rjm1cc, I was just reading that my card can possibly go to 70K, so I might go that route. I dont want a bunch of cards if I can improve it with just upping the one.

[jghorton]

One's FICO score can be increased with a credit increase - because it reduces the utilization rate (of available credit).

For example, if you have $25K available credit limit and an average balance of $5K, your utilization rate is 20-percent, but, if you increase your available credit limit to $50K, the same $5K average use will reduce your utilization rate to 10-percent (which is 'more-better').

(I'm uncertain if there is a predictable direct relationship ratio between U-rate and FICO score).

[rjm1cc]

Originally Posted by cyberous

Thanks rjm1cc, I was just reading that my card can possibly go to 70K, so I might go that route. I dont want a bunch of cards if I can improve it with just upping the one.

For safety you want more than one. I was traveling and the clerk at the motel tried to use the card number that night and by next morning the card was on hold for suspected fraud. I found out the next time I went to use it. Another card was also on hold waiting for a call from me to say it was ok. Same company handled both cards.

The card can also fail for wear and tear.

I would get two back up cards.

[Grumpty]

I just use my 2nd card for a recurring monthly bill and then it is there in case something happens with my primary card. Very easy to manage.

[cyberous]

Thanks for the suggestions. I have an ATM Visa card and a work card that I could use if I had to.

[galaxyhi]

Originally Posted by cyberous

Thanks rjm1cc, I was just reading that my card can possibly go to 70K, so I might go that route. I dont want a bunch of cards if I can improve it with just upping the one.

It's always a wise idea to have Ault least one alternative card.

What happens if yours is lost, stolen, or compromised? You are out of luck til the replacement comes.

I have 3 cards.

I've had tgem compromised while on vacation, thank goodness I had a backup.

Just saying.

[galaxyhi]

Originally Posted by cyberous

Thanks for the suggestions. I have an ATM Visa card and a work card that I could use if I had to.

Be careful with that too, if attached to your checking, savings or both, tgey may be able to access and drain your accounts too.

Ask me how I know.

I will never again use a card attached to my bank accounts.

The visa logo may offer some protection, but it can cone too late.

[thelopez2]

Credit inquiries will hit your score.