What Are The Effects Of Raising A Credit Limit?

I just had my credit limit raised and asked for a diffrent card within my cardholder in order to lower the intrest rate. They granted me the credit raise and to my suprised send me a letter that stated that my intrest rate would be 50% less than the rate they had quoted me over the phone. I really don't understand how that works. Did any of my actions have a bad affect on my credit score?

Comments(5)

  • cygnus19th November, 2004

    As long as you did not transfer a balance or otherwise begin using a large percentage of the new credit line then your score will not be affected. Having a large credit line in itself is not a problem. You start getting penalized when you use to much of you credit or you have to many lines of credit open.

  • GregTanner21st November, 2004

    Raising your credit limit could actually raise your credit score because it will lower your overall balance to limit ratios.

  • ceinvests21st November, 2004

    You said that your interest rate was 50% less than quoted. That should be a more favorable rate. Maybe the change in card was a change in terms.

  • flippingcoins1st December, 2004

    Well... I asked about the any new fees and such, the card providers had told me none are applied. Is there anything else I could do to bring up my score?

  • RESteve5th December, 2004

    One card I currently have, when asked to raise the limit, ran a credit report. (request was done online).

    So as well, you may have a new inquiry?

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