Credit limits are an important factor in your credit score because of the debt to credit limit ratio. The lower the ratio the higher your credit scores because the credit bureaus want to see that you can control your spending. If you have a high credit limit and have the option of using up the entire credit limit, but don’t, then you become a low risk user and deserve to have a higher credit score interpretation.

The solution then is to increase your credit limits and keep your balances low. The higher the credit limit with a low balance, the lower the debt to credit limit ratio the higher your credit scores.

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