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Trying to raise my credit score

May 21st, 2008 at 01:48 pm

I know the best way to raise your credit score is to be consistent with debt payoff. But while I am doing that, I also decided to try a little trick I read about.

Your credit score is partially based on your debt to available credit ratio. For example, if I owe $1,000 on a CC that has a $2,000 limit, my ratio would be 1:2, or 1/2 (50%). But if I owed $1,000 on a CC that has a $3,000 limit, my ratio becomes 1:3, or 1/3 (33%). The lower that percentage number, the better.

I recently got a credit limit increase on my major CC, so I figured I would ask for one on my LBCC. The maximum I could request as an increase was $300. I got a notice yesterday saying they approved that. So now my debt to available credit ration went from $1,100 on a $1,500 limit to $1,100 on an $1,800 limit. It is not much, but as we all know here, every little bit helps.

For anyone who is interested in trying this, I just need to caution that you MUST have the willpower not to charge more just because your CC limit is higher. That will only get you into more debt and more trouble.

3 Responses to “Trying to raise my credit score”

  1. Petunia Says:
    1211380424

    I did not know this. Thanks for sharing!

  2. Aleta Says:
    1211382195

    I also read somewhere that to try to keep your credit to 10% of your limit. So, if you have $5000., you would be OK with $500. owed on the credit card. This will also get your score higher. I think you need to do this for a couple of months. Wish I knew where I read that. It could have been from Suze Orman, I'm not real sure. You might be able to google it and get more infomation.

  3. Koppur Says:
    1211385083

    thanks Aleta! Smile

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