Does increasing your credit limit help your credit?

It can so long as you do not rack up your balances accordingly. Credit bureaus use a debt to available credit ratio to assist in scoring. If you have $30,000 in available credit and have used only $10,000 of that (using 33% of your availble credit), your score will be higher than someone who has used all $30,000 (100%).

Looking at it another way, your score will be higher if you have available credit of $50,000 with a $30,000 balance than available credit of $35,000 with a $30,000 balance.

So, the point of all this is, if you use your credit regularly and occassionally rack up high balances, it may be a good idea to increase your credit to keep you from approaching your credit limits. One you approach or exceed your available credit, your scores will drop dramatically.

If you seldom use your available credit, then there is no need to increase your limits. Too much available credit can also be derrogatory.

And, as a real hair-puller, if you don't use your available credit at all, it will also be considered derrogatory. The reason for this is because the bureaus score you based partly on your pay history. If you have no payments to make, and no activity on your accounts, they will have nothing to score you by.

An addition, once your total amount of credit reaches a certain point with respect to your income, you will be turned down for additional credit based on that. For killer credit, you should be well below the maximum allowed credit for you income, have maxed out and subsequently paid off all your accounts, and then maintain them pretty much paid off.