If your credit score is between 740 and 760, you're probably already getting the most favorable terms when it comes to opening a new credit card or getting a mortgage, Rossman says. But if it's below that threshold, every point counts.
Say you have a 675 credit score and qualify for a $300,000 mortgage with an interest rate of 7.5%. Over 30 years, you'll pay around $36,000 more in total interest expenses than if you'd had a 700 credit score and received a 7% interest rate, Rossman says. Say you have two credit cards that each have $6,000 limits; your total available credit would be $12,000. If you're carrying a balance of $3,600 between the two cards, your credit utilization rate is 30%.because it shows lenders that you're generally good at managing debt.
Another method to try is asking your lender to increase your line of credit, Rossman says. Typically, you can do this within your banking app or by calling your issuer.