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I am almost 20 and have had a credit card since I was 18, I was working (officially) since I got my chequing account in early teens. I have been with TD Canada Trust ever since (Canada). Now I want to take a year off and go back home to another country.

I have a credit limit of $1,000 at the moment and I am almost always on the edge of maxing it out every month (I make payments as necessary every month, never been late) due to my spendings (each time different cases). Now since I am also going away I want some security in case I need some extra cash or need to make a purchase larger than my limit.

Should I rather call and ask for my limit to be made higher, or should I go with another bank and get a credit card there as well. How will my decisions impact my credit scores for future.

I like second option because I feel safer by keeping my eggs in seperate baskets.

Thank you.

  • I'd call the current issuer for a higher limit. Cite your payment record and be honest, you just want more breathing room. As far as impact to your credit score either way it's basically the same. It's probably easier to get more credit from your current bank than starting a new relationship with a second bank. – quid Mar 25 '16 at 2:29
  • I'm curious why this question has been DV'd? At first read it seems reasonable to me... – TTT Mar 25 '16 at 2:43
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    This must be a duplicate. At least. – keshlam Mar 25 '16 at 8:38
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  • Applying for a second card will temporarily lower your credit score; however, applying for a credit increase on the first card will also lower your score. Both cases typically result in a hard pull of your credit report.

  • If you're approved for the card, your score may go up somewhat because the percentage of credit utilized will go down. (If currently your balance is $900 / $1000, utilization is 90%. Getting a second card with $1000 balance and keeping the same balance means utilization is $900 / $2000 = 45%.

More important than your credit score is your ability to pay your card off. If you already can't handle paying off your card with a $1000 limit, I'd be worried about your ability to handle a higher limit.

  • I understood the OP to say that he doesn't have any problem paying (though I'm not clear on whether he pays in full every month, or carries a balance). The problem is that he tends to spend more than the $1000 limit in a month. But having multiple cards doesn't hurt your credit rating, long term, IF you keep up the payments. I have... oh, maybe 6 or 8 ('cause they were giving me money to sign up), and a CR over 800. – jamesqf Mar 25 '16 at 17:23

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