Higher Credit Limits Can Increase Your Credit Score

Staying Out of Credit Trouble

A key factor in credit scoring is the ratio of your available credit to the amount of credit you currently use. The lower the ratio - meaning the less you borrow compared to what you could borrow - the more positive the impact on your credit score. One way to increase your credit score is to ask for and receive a higher credit limit. That way your current debt instantly makes up a smaller percentage of the total debt available. Your ratio drops, and your score should increase.

Just keep in mind that if you spend the credit available, your ratio goes back up - and so do your monthly payments and your total debt.


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The information provided is not intended to be legal, tax, or financial advice or recommendations for any specific individual, business, or circumstance. TowneBank cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided for illustrative purposes only. You are encouraged to consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.

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