ilmscore | Prediction Details
"the higher the limits you have, the lower your balances will be in relation to that amount. For example, if you carry a $250 balance on a $500 limit, that's a 50% utilization, which is high, and that will lower your score. However, if you now have a $5,000 limit and that very same $250 balance, you now have a 5% credit utilization, which is low, and that will increase your score."
By Graham Stephan | January 17, 2022 | Pending
From video
The 5 BEST Credit Cards For Beginners In 2023 00:14:01 - 00:14:26
Interpreted Prediction
Increasing credit card limits reduces credit utilization ratio, which positively impacts credit score. For example, a $250 balance on a $5,000 limit results in 5% utilization, compared to 50% on a $500 limit.

Prediction Details

Topic
Credit Limit Increase Impact on Utilization

Comments

0 comments

Be the first to share your thoughts.

Like this prediction?

Join to make your opinion count.