ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This is based on the entire amount you owe, the number and types of accounts you have, and the amount of money owed compared to how much credit you have available. High balances and maxed-out credit cards will lower your credit score, but smaller balances may raise it – if you pay on time.

Detailed explanation-2: -The credit-based limit Many credit card companies turn to your credit score to help determine your card’s limit. This means that factors such as payment history, credit utilization, length of credit history, credit mix and recent inquiries will impact your new card limit.

Detailed explanation-3: -Increasing your credit limit, also known as a credit access line, won’t necessarily hurt your credit score. In fact, you might improve your credit score. How you utilize the credit access line after the increase is one of the multiple factors that can impact your score.

Detailed explanation-4: -What does it mean? A FICO score is the number used to determine someone’s creditworthiness, your credit score. Financial institutions and lenders use this as a guide to determine how much credit they can offer a borrower and at what interest rate. FICO scores can range from 300 to 850, the higher the number the better.

Detailed explanation-5: -The base FICO® Scores range from 300 to 850, and FICO defines the “good” range as 670 to 739. FICO®’s industry-specific credit scores have a different range-250 to 900. However, the middle categories have the same groupings and a “good” industry-specific FICO® Score is still 670 to 739.