Americans are spending more, according to the Federal Reserve, which says an increase in home, car and credit card purchases may suggest improved confidence.
But as consumers pull out their credit cards, more, there may a way to improve their financial health by asking their bank to raise their credit limits.
At credit reporting agencies, 30% a credit score is determined by a 'debt-to-available credit' ratio. In other words, the closer consumers are to maxing-out their cards, the worse-off they are...
Gerri Detweiler, of Credit.com, says "Even though it's a small amount and a small limit, the fact that you're using so much of that available credit can count against you, in your credit score. Probably more than most people realize."
The strategy will only work for consumers with a solid history of paying their bills on time, but may be helpful for people looking improve their profile before borrowing to make a major purchase