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Level 2

Credit card limit

no you shouldn't increase the card limit. the reason your credit score drops is that your balance on your card or cards just went up past the 10% card usage according to the credit bureau.   that's a lot to spend during the holiday times. if you keep your cc down under the 10% that's great. hope this helps    

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Level 7

Credit card limit

Consider paying the balance before the statement closing date instead of when the payment is due. This will show a lower reported balance to the bureaus each month.
Level 14

Credit card limit

Maybe cutting back on the spending habits is a strategy ????
Level 7

Credit card limit

Assuming your can manage your credit responsibly with a higher credit limit then, all else equal, having a higher limit should improve your credit score at the margin.

Level 7

Credit card limit

Not exactly correct.

 

If you increase your limit but do increase your spending/credit utilization, then it should have at least a small positive impact on your credit score as your credit utilization ratio (credit used as a percentage of total credit available) is one input taken into account when computing a FICO score. 

 

With respect to debt-to-income, simply just increasing your credit limit will not change your DTI. The D in the DTI ratio is based on actual debt you have outstanding, not unused credit. Of course if you increase your limit by $10k and then go out and spend the additional $10k in capacity on your credit credit then it will pressure your DTI higher, but simply increasing your limit will not impact DTI.