It Could Help
An application for a larger credit limit that gets approved can be beneficial to your credit score. It shows potential lenders that a credit card company trusts you to make payments on time. Typically, people with delinquencies on their credit history do not have high limits.
It Could Hurt
Credit card companies sometimes give people huge credit limits that become temptations. While a $40,000 limit means you have a strong credit history, it does not insinuate that you should begin maxing out your card. Just making the minimum payments each month can leave you paying off debt through retirement.
Bottom Line
Apply for a larger credit limit without plans to spend more. If you can spend 10 percent to 20 percent of your credit limit each month and pay the balance in full, your credit score can improve.
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