How To Increase Your Total Available Credit (And Why You Should Care)

By Kira Brecht, Updated on Apr 14, 2021

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How To Increase Your Total Available Credit (And Why You Should Care)

How FICO® Scores are calculated

Source: myfico.com

Did you know that opening a new credit card increases your total available credit? That can be good for your credit score.

How FICO® Scores are calculated

Source: myfico.com

How much credit card debt you owe each month is the second most important factor impacting your credit score. Using too much of your available credit can lower your credit score, which can hurt your ability to get the best interest rates on auto loans or home mortgages.

Goal: Keep your utilization ratio below 30%.

  • Lenders like to see that you haven’t completely tapped your available credit, so try to keep your utilization low.
  • A credit utilization rate is the amount of your available credit tied up in debt.
  • If your credit utilization is above 30% you should increase your available credit. 
 

Take steps to increase your total available credit. Getting a new credit can be a smart move.

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Key features: Earn best-in-class cash-back on gas and groceries with no rotating categories. Start off with a generous welcome offer: $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. This card offers an extraordinary 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. If you spend $500 per month on groceries, over the course of a year, you'll earn $360 cash back for food you are already buying. You will also get sizable cash back at U.S. gas stations and select U.S. department stores, plus 1% cash back on everything else. Get flexibility for your budget with the 0% on purchases for 12 months intro APR on purchases then 13.99%-23.99% variable.

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*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.