More Credit, Less Stress? When to Ask for a Limit Increase — Money Minute

Ever wonder if raising your credit limit is a smart move

Well, it can be, if you're doing it for the right reasons. A higher limit gives you more available credit and lowers your credit utilization ratio

or the percentage of credit you're using, compared to your overall credit limit

And keeping that number low can actually boost your credit score over time

So when's the right time to ask for a credit limit increase? It's best to try it when your credit has improved, your income has gone up

or you've had your account for a while. Lenders look at your payment history, income, and how long you've had your card

If you've been paying on time and keeping balances low, you're in a good spot

But here's the catch. More credit means more spending power, but it doesn't mean you should spend more

It's easy to feel like you've got extra money to play with, but that can lead to trouble

If you raise your limit and start charging more, you could end up hurting your score instead of helping it

So be smart. Use credit to build your financial future, not break it

A little discipline now can lead to big rewards later