One of the ways you can improve your credit rating is to lower your credit utilization ratio, that is: the amount you owe compared to the amount you could borrow.
It’s usually better to just pay down the principal, but sometimes that’s not possible. If you’re confident in your ability not to abuse it, raising your borrowing threshold will give your credit score an instant boost.
I’d assumed this was a complicated process requiring some degree of cringing, but it turns out increasing your credit limit is extraordinarily easy. This method was described to me by an educator in my city’s free first-time homebuyer program. I will try to transcribe it exactly as she said it:
“If you need a bigger line of credit, here’s what you do. You call your credit card company and you say, ‘Hello, I have been a customer of yours for however-many years, and I have paid all of my bills in-full and on-time, and I am pleased with my experience with you thus far but I really need my credit limit extended by however-much, today, and if you don’t want to increase it I’ll take my business elsewhere, and I’m happy to hold while you get your supervisor’s approval, thank you.’”
The sleepy evening class full of tired working folks trying to absorb financial information around dinnertime was not usually very animated. But this amazing power-move caused an eruption not unlike Game of Thrones fans hearing their Khaleesi inform a bitch that “a dragon is not a slave.”
I did exactly what she said. You’d better believe it worked.
Confused about how credit works? We got you, boo: