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Credit Cards Q&A

Q: My credit card company just increased the spending limit on one of my cards. What kind of effect will this have on my credit score?
A: Actually, increasing the limit on your card may have a beneficial effect on your score, as long as you don’t add any debt. A higher limit means you’re using less of your available credit, so you don’t appear to the credit card companies to be maxing out your cards. For example, if you charge $1,000 when you have a $10,000 limit, it looks much better than if you charge $1,000 when your limit’s $2,500. If the card is in the company's name rather than yours, and you’re added as an authorized user with the company paying the bill, any late payments would appear on the business credit report rather than your individual report.
Now that you know more about credit scores, sign up for TransUnion Credit Monitoring today and receive your credit report & score.
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