Yes
Use Less Credit. While you can lower your credit utilization by increasing your credit limit, you can also attack the other side of the issue. If you have 40 percent utilization due to a $1,000 balance and a $2,500 limit, spending or owing less on your credit card will have the same impact as raising your credit limit. One way to mimic the impact of a credit limit increase is to get a new credit card. However, this strategy may have two drawbacks. First, getting a new card will require a hard inquiry to be placed on your credit report, since the new issuer will check your credit risk level. Of the many methods you can use to improve your credit score, increasing your credit limits is one you can employ today. You can usually ask for a credit limit increase after the first six months of opening a credit card. However, plenty of people don’t act to boost their spending limits. See how you can increase your credit limits and how each method can affect your credit score: 1. 3. Card limit transfers. The first two methods of getting a credit limit increase are the standard approaches that credit card users take to increase their spending limits. If those two fail, there is one more way – but it is a little more tedious and could negatively affect your credit score. Generally, getting denied for a credit increase won’t directly affect your credit report or your credit score. However, while the denial itself doesn’t make a difference, the process leading up to it can. Also, by not getting a credit increase, you’re missing out on the benefits of having additional credit. One way to mimic the impact of a credit limit increase is to get a new credit card. However, this strategy may have two drawbacks. First, getting a new card will require a hard inquiry to be placed on your credit report, since the new issuer will check your credit risk level. If you have two credit cards with $5,000 limits, you have a total of $10,000 available. If one card has a $5,000 balance and the other a zero balance, your utilization rate is 50 percent. However, if the limit on one card is increased by $5,000, your limit total increases to $15,000. Your utilization rate immediately decreases to 33 percent. You can ask your lender to reduce the limit or lower it to its previous level, but that likely won’t help your credit scores. Thanks for asking. An increased credit limit can be a temptation to overspend. A high credit score is a valuable asset since it can lower your interest rate on important purchases like a home or a car. To increase your credit score, you'll have to be responsible with your credit. An increased credit limit will affect your FICO score, which is the industry-standard credit score created by the Fair Isaac Corporation. Amounts Owed. The amount you owe on your credit cards plays a role in determining your FICO score. Along with credit utilization, the amount of debt you carry makes up 30 percent of your total score. With an increased credit limit, you may end up incurring more debt, raising the amount that you owe. One good reason is to improve your credit score. Lowering your credit utilization ratio, the percentage of your available credit that you are using, can boost your credit score substantially as credit utilization accounts for a big chunk -- 30 percent -- of your FICO score. In general, you should aim to keep your spending far below 30 percent of your credit limit. In other words, if you're spending $1,500 or less a month using a card with a $5,000 limit, you're OK -- though the highest credit scores go to those with spending levels below 10 percent of their limit.  Actually, an increase in your credit limit can help your credit scores. So, unless you are just too tempted to charge up to the new limit, you should not worry about it. The reason that a credit limit increase can help credit scores is related to something called your utilization rate, or balance-to-limit ratio. The lower your utilization rate, the less risk you represent to lenders. However, if the limit on one card is increased by $5,000, your limit total increases to $15,000. Your utilization rate immediately decreases to 33 percent. You can ask your lender to reduce the limit or lower it to its previous level, but that likely won’t help your credit scores. Thanks for asking. Generally speaking, keeping your balances low on credit cards is good for your FICO score because that helps keeps your credit utilization rate low. When a lender raises your credit card limit, that may lower your credit utilization rate and, in some cases, could increase your score. When a lender lowers your limit or closes your credit card account, that may raise your credit utilization rate. It doesn't matter to your FICO score who closed your account — you or the lender. Closed accounts can remain on your credit report for several years
https://www.freecreditscore.com/blog/rejected-credit-increase-affect-credit/ http://money.usnews.com/money/blogs/my-money/2014/06/27/3-ways-to-increase-your-credit-card-spending-limit https://www.freecreditscore.com/blog/rejected-credit-increase-affect-credit/ https://annualcreditreport.experian.com/ask_max/max012109a.html http://budgeting.thenest.com/increased-credit-limit-hurt-credit-score-26274.html http://www.creditcards.com/credit-card-news/how-raise-credit_limit-1267.php https://annualcreditreport.experian.com/ask_max/max012109a.html http://www.myfico.com/CreditEducation/Articles/Credit_Limit_Decrease_Affect.aspx
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