Can I Buy a Home With Bad Credit? The Answer May Surprise You! If you've ever…
10 Steps to Repairing Your Credit. #7 Is Extremely Important
3. Call Creditors To Increase Your Credit Line
Now, your debt to credit ratio is a factor in your credit report. The higher the ratio, the more it negatively impacts your credit score. For instance, if the combined credit limit on all your credit cards is $10,000 but you have a $5,000 combined balance on your cards, that’s a 50% utilization rate. That’s not good. You want to keep the utilization rate below 30%, ideally below 15%. The easiest way to do this is to call your existing credit card companies and ask them to increase your credit. If your $10,000 combined credit limit is increased to $20,000, your credit utilization rate is reduced from 50% to 25%, thereby raising your credit score. You may not see a huge jump (60 points or more) from adjusting your utilization rate, but it is not uncommon to see jumps between 20-40 points just by increasing your credit line.