{"id":6210,"date":"2014-11-21T15:55:28","date_gmt":"2014-11-21T23:55:28","guid":{"rendered":"http:\/\/al6400.com\/blog\/?p=6210"},"modified":"2014-11-21T15:55:28","modified_gmt":"2014-11-21T23:55:28","slug":"credit-utilization-credit-score","status":"publish","type":"post","link":"https:\/\/www.al6400.com\/blog\/credit-utilization-credit-score\/","title":{"rendered":"Credit Utilization For Credit Score"},"content":{"rendered":"

Today I got an interesting message where I had credit card companies telling me how I am pre-approved to increase my credit limit. As you can see like in this example I was being informed that I can increase my credit limit by an additional $5000:<\/p>\n

\"creditlimitincrease\"<\/a><\/p>\n

I was debating at first if I should or not as I consider my current limit pretty high as it is and I don`t go crazy spending like say 80% of my limit every month. So in my mind the only real use I would have to increase my credit limit is the whole notion that it will potentially make my credit score higher.<\/p>\n

For those who are unaware, credit utilization is your credit limit in comparison to your credit usage. For example, if you have a $10,000 credit limit and your balance is always $6000 then your utilization rate would be 60%. If you usually only have like $500 then your credit utilization rate would be 5%. Generally speaking, it is advised that you have a low credit utilization ratio as the lower the number the better it will reflect upon your credit score and history.<\/p>\n

I can see why a bank would love it in this case as it probably encourages people to potentially shop more which means more money for them. After thinking about it, I decided to accept the offer. The sole reason? Simply as a way to potentially make my credit score better. In my situation, I always fully pay off my monthly statements and I don\u2019t go crazy buying life luxuries that I cannot afford. So to me, I only see the positive where it will reduce my credit utilization ratio.<\/p>\n","protected":false},"excerpt":{"rendered":"

Today I got an interesting message where I had credit card companies telling me how I am pre-approved to increase my credit limit. As you can see like in this example I was being informed that I can increase my credit limit by an additional $5000: I was debating at first if I should or […]<\/p>\n","protected":false},"author":1,"featured_media":8444,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[5],"tags":[5301,5302,1071,5300,5954,21],"class_list":["post-6210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-management","tag-credit-card-limit","tag-credit-limit-increase","tag-credit-score","tag-credit-utilization","tag-financial-management","tag-money"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.al6400.com\/blog\/wp-content\/uploads\/2016\/07\/above-vancouver-eye-of-wind.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6VnHC-1Ca","_links":{"self":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/6210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/comments?post=6210"}],"version-history":[{"count":1,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/6210\/revisions"}],"predecessor-version":[{"id":6212,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/6210\/revisions\/6212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/media\/8444"}],"wp:attachment":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/media?parent=6210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/categories?post=6210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/tags?post=6210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}