El Dinero Report November 2020 | WEARESUMA

When Should I Ask For a Credit Limit Increase?

The ability to spend is a blessing. Swiping that credit card can feel like a spiritual experience. But hitting your credit ceiling can bring you right back down planet Earth.🌎 😬

You can increase your credit limit responsibly and even raise your credit score, too! Let’s start by growing your budget power! With the right money management you can spend without it crushing your spirit. 😍💰

Let’s talk about Credit Utilization 👀 That’s a complicated way of how much credit you’re using. It is 30% of your credit score. Pero qué es? It involves two factors.

1️⃣ How much you owe credit-wise divided by the credit available and 

2️⃣ Everything you owe divided by how much credit you have. These numbers make up the Aggregate Utilization. This number can boost your credit score dramatically 😲📈

Cómo when you’re in the kitchen with your tías. If you are doing well cleaning las habichuelas, you get “upgraded” in trust to cook el pollo. If you are managing your credit well the credit card company will reward you by raising your limits.

There is a bad time to ask for a credit limit increase 🤚🏼 If you have applied for other credit lines, been hired at a lower paying job, or your card has been declined it can ding your credit. Asking for a credit increase at this time can hurt your credit. 😰

Keep your paciencia y fe, when you get a raise or pay off a card you can ask for a credit increase. You can even ask your tías to send some messages to the man upstairs. Miracles do happen! 🙏🏼👀

Until then, spend responsibly. 

Share this credit tip with your shopping amiguis!

Source: Nerd Wallet


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