What about applying to increase your credit limit? I have an AMEX balance that is at 3.99%, so I haven't bothered to pay it off. I opened the account when we had an emergency in residency and I've just been paying minimum payments since then. They recently informed me that they have decreased my credit limit on the account (meaning I now owe about 80% of my limit); I called and they couldn't give any reason. I wouldn't care, except that we're about to buy a house in the next few months and I would like my credit rating as high as possible. I have a higher income than they think, so I'm sure I could qualify for a higher limit and I've never made a late payment. Does it hurt your credit score to apply for an increase in limit? If so, which is worse--high debt-to-limit ratio or applying for an increase?
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