If you’re looking to improve your credit score fast, you might be interested in ChatGPT’s advice. When the artificial intelligence (AI) chatbot was asked how one could raise their credit score 150 points within six months, it said that a 150-point increase in six months is aggressive, but possible, if the credit file is established and the issues are fixable. Interested in improving your credit score? Here are the steps ChatGPT recommended. Also see six smart ways to get approved for loans and credit ca ...

Core Insights - A Reddit user with a high FICO score of 798 was denied a personal loan by Citi due to low balances on revolving accounts, despite a strong credit history and timely payments [1][2] - The denial was attributed to the user's practice of paying off credit card balances before the statement closing date, resulting in a reported zero balance and perceived inactivity by lenders [2][3] Group 1: Credit Utilization and Reporting - Credit card issuers report balances to credit bureaus on the statement closing date, not the due date, which can lead to misunderstandings about credit usage [2] - Maintaining a small balance on credit cards can demonstrate responsible usage to lenders, as opposed to paying off the balance entirely before the statement [3] Group 2: Lender Perceptions - Lenders may view applicants with no visible debt as suspicious, which can impact loan approval decisions [4] - The general consensus among commenters suggests that allowing a small balance to report each month can improve the chances of loan approval while avoiding interest charges [3]

Core Insights - A high credit limit can positively impact credit scores by lowering the credit utilization ratio, which lenders prefer to see at 30% or less of available credit [1][2][3][20] - Increased credit limits provide more purchasing power and can lead to earning more rewards on everyday spending [4][5][6][20] Pros of High Credit Limits - **Lower Credit Utilization**: Higher total credit reduces the utilization ratio, which is beneficial for credit scores [2][3] - **Increased Purchasing Power**: More available credit allows for larger purchases, which can be useful for significant expenses like moving into a new home [4] - **More Rewards**: Higher spending limits can lead to more cash back or rewards points, especially with rewards credit cards [5][6] - **Emergency Fund**: Credit cards can serve as a temporary financial resource during emergencies [7] Cons of High Credit Limits - **Potential for Increased Debt**: Higher credit limits can lead to overspending and accumulating more debt if not managed properly [8][10][20] - **Hard Credit Check**: Requesting a credit limit increase or applying for a new card typically results in a hard inquiry, which may temporarily lower credit scores [11][20] Strategies to Increase Credit Limits - **Request a Credit Limit Increase**: Existing cardholders can request an increase through their credit card issuer [12][13] - **Automatic Credit Limit Increases**: Some issuers may automatically increase limits based on account activity without negatively impacting credit scores [14][15] - **Open a New Credit Card**: Applying for a new card can also increase overall credit limits, though it usually involves a hard credit check [16] High-Limit Credit Cards - **Business Credit Cards**: Small business owners often qualify for higher credit limits, typically starting at $5,000 [17][19] - **Premium Travel Cards**: Cards like Chase Sapphire Reserve and Capital One Venture X are known for offering some of the highest credit limits [19]

Core Points - Closing a credit card can be a straightforward process but may impact credit scores, making it essential to understand the implications before proceeding [1][12] Group 1: Steps to Cancel a Credit Card - Review the cardmember agreement for specific cancellation instructions and reward handling [3] - Redeem any accrued rewards before closing the card to avoid losing them [4] - Pay off the balance in full prior to cancellation, as most issuers require this [5] - Contact customer service to officially close the account and verify identity [5][6] - Cut up the physical card to prevent fraudulent use after closure [7] - Update any recurring payments linked to the card to avoid missed payments [8][9] - Check the credit report after closure to confirm the account status [10][11] Group 2: Impact on Credit - Closing a credit card reduces available credit and can increase credit utilization, which affects approximately 30% of the FICO credit score [13] - An example illustrates that closing a card can raise credit utilization from 32% to 47.5%, potentially affecting loan approval chances [14][15] Group 3: Reasons to Cancel a Credit Card - Closing a card may be necessary during a divorce to eliminate shared financial responsibility [16] - High fees associated with certain cards can justify cancellation, especially if the card is not frequently used [17] - A product change may be a better option than cancellation to maintain credit history while reducing fees [18][19] - Fraud victims may need to cancel a card to protect against unauthorized charges [21] - Changes in card structure, such as unfavorable terms, can warrant closure [22] - Psychological factors, such as overspending temptation, may lead individuals to close accounts [23] Group 4: Managing Credit Cards - While closing a card can lower credit scores, it may be beneficial for managing high fees or spending habits [24]