I have had the same card for quite some years now, approaching 10. I have requested a few limit increases for the sake of convenience because buying a computer or international airfare tends to be the majority of a smaller limit or in excess.
I do not think I have ever exceeded 50% utilization on the card since this increase and pay the card of monthly, as I have for years.
I last requested an increase over a year ago. I do not really care about what the limit actually is because I only spend money I have with the card whether the limit is $1,000 or if it was $100,000. As a result I have absolutely no fear of running up a large credit card debt.
But reading here recently suggests there is an optimal utilization of <20% of your card balance for credit score, which depending on the month or when the snapshot is taken, I sometimes exceed. Considering this could be a very painless way to increase that score (which is already pretty good, I would think) it seems I might as well apply for another limit increase.
Given all this:
- Is there any reason why applying for a credit increase is a bad idea for someone in this sort of situation?