Let’s assume that a credit card company issues you a new account with a $10,000 credit limit, that means $10,000 is the maximum amount you can borrow on your credit card at once.

That puts your credit utilization at 67%. But if you can raise your credit limit to $3,000, your credit utilization will drop to 50%, a change that should push up your credit score.

When you shouldn't ask for a credit card limit increase in today's economy If you're one of the average credit card holders right now, saddled with a credit card debt of $8,000 approximately, then ...

Check out our inclusive guide with steps on how to increase or decrease your Citi credit limit and find out if a credit limit increase is the right move for you.

If a bank confirms a limit increase of $2,500 to $5,000, it's easy to convince yourself that you can spend up to $2,500 more. This is the start of the slippery slope into credit card debt.

The other risk of a higher credit limit to your score is that you will start spending more. If you have a credit line of $1,000, for example, you might only think of your card as something to use ...