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 ...

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.

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.

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 ...