How Does My Income Affect My Credit Limit? (Experian)
Increasing your credit limit can bring down your credit utilization ratio and help lift your credit score. The opposite is also true.[11] If your available credit goes down while your spending habits stay the same, it can drag down your score. Closing out old credit cards, missing payments or reporting a reduction in your income all could result in lower credit limits.
How to Increase Your Credit Limit
One benefit of increasing your credit limit is that it can positively impact your credit score pretty quickly, assuming you don’t drive up your balances. One way to do it is to simply call up your creditor and ask[12]. (Yes, it might be that easy.) It isn’t unreasonable to expect a 10% to 20% bump.
Another way to increase your credit limit is to open an entirely new credit account—and use it responsibly. If you’re unable to pay off the balance in full each month, aiming to keep it under 30% can go a long way in improving your credit score.
The Bottom Line
Your income is one of the many things lenders consider when determining your credit limit. Along with your credit history and credit score, it helps paint a picture of who you are as a borrower. Before applying for credit, take a look at your credit reports. You can do this by getting a free copy of your credit reports from all three credit bureaus—Experian, TransUnion and Equifax—from AnnualCreditReport.com[13]. You can also get your free credit report and score[14] directly through Experian to help bring it all into focus.
References
- ^ AnnualCreditReport.com (www.annualcreditreport.com)
- ^ credit limit (www.experian.com)
- ^ included on your credit report (www.experian.com)
- ^ debt-to-income ratio (DTI) (www.experian.com)
- ^ .u69ecbf70f6534deb6f95e7f81fd2b9af { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#2980B9; border:0!important; border-left:4px solid inherit!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u69ecbf70f6534deb6f95e7f81fd2b9af:active, .u69ecbf70f6534deb6f95e7f81fd2b9af:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u69ecbf70f6534deb6f95e7f81fd2b9af { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 0.8; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u69ecbf70f6534deb6f95e7f81fd2b9af .ctaText { font-weight:bold; color:#e6e6e6; text-decoration:none; font-size: 16px; } .u69ecbf70f6534deb6f95e7f81fd2b9af .postTitle { color:#FFFFFF; text-decoration: underline!important; font-size: 16px; } .u69ecbf70f6534deb6f95e7f81fd2b9af:hover .postTitle { text-decoration: underline!important; } More: Step-by-Step Checklist to Opening an IRA (www.companynewshq.com)
- ^ credit utilization ratio (www.experian.com)
- ^ below 30% (www.experian.com)
- ^ FICO® Score☉ (www.experian.com)
- ^ many types of credit scores (www.experian.com)
- ^ .u3db2647b683b84e4bcdacd46fcd0da8b { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#2980B9; border:0!important; border-left:4px solid inherit!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u3db2647b683b84e4bcdacd46fcd0da8b:active, .u3db2647b683b84e4bcdacd46fcd0da8b:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u3db2647b683b84e4bcdacd46fcd0da8b { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 0.8; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u3db2647b683b84e4bcdacd46fcd0da8b .ctaText { font-weight:bold; color:#e6e6e6; text-decoration:none; font-size: 16px; } .u3db2647b683b84e4bcdacd46fcd0da8b .postTitle { color:#FFFFFF; text-decoration: underline!important; font-size: 16px; } .u3db2647b683b84e4bcdacd46fcd0da8b:hover .postTitle { text-decoration: underline!important; } More: How to Make Extra Money From Home (www.companynewshq.com)
- ^ The opposite is also true. (www.experian.com)
- ^ call up your creditor and ask (www.experian.com)
- ^ AnnualCreditReport.com (www.annualcreditreport.com)
- ^ free credit report and score (www.experian.com)