Wouldn't it be nice to have a higher credit limit on your credit cards? A higher credit limit could serve as a buffer for an emergency cash flow problem, saving you from searching for short-term loan options. Another advantage of a higher credit limit is a potentially higher credit score through lower credit utilization – assuming that you don't take a higher credit limit as a license to spend more money and increase your debt.
The credit utilization rate, as explained by Rod Griffin, Director of Public Education at Experian, is "simply your balance-to-limit ratio. Add up all of your balances on your credit cards, all of the limits on your credit cards, and divide those totals ... you get the utilization rate. The higher that rate, the worse it is for your credit score." Sean McQuay, Credit and Banking Expert at NerdWallet, suggests keeping utilization below 30%, but Griffin notes that those with the best credit scores utilize less than 10% of their available credit.
...from MoneyTips https://www.moneytips.com/increase-your-credit-limit
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