Use Lenders That Report Credit Limits
Some credit card companies make agreements with you not to share your credit limit with other credit reporting agencies. This is a strategic marketing tactic intended to throw the competition off track. If the lender doesn’t report your credit limit to FICO then the other credit companies have no idea how good your credit really is and therefore cannot make you a better offer.
The problem is that as a credit card customer you want that better offer. When it comes to the reporting of credit card limits the more information that the credit card companies have about you, the better. This is especially true if you have a high limit, as that will garner you higher limit cards. This allows you to spread your balance across many high limit cards and increase your credit score rather than be deep in debt in just a few cards.
Being close to the limit on your cards month after month is a good way to watch your credit score tumble down into the 600s over time
Your lenders should also report your credit limits to all three credit reporting agencies so that your use of the account can be accurately configured into all three scores. If you acquire your credit reports and discover this hasn’t been done you are within your rights to write a letter to the lender and ask them to do this.
You should also avoid lenders who report your current balance as your credit limit. This makes it look like you’ve maxed out your credit limit for a particular credit account, which lowers your scores. You can pay your account on time and then get nowhere with raising your credit limit if a credit company insists on doing this.
Once again you are within your rights to write the credit card company and ask them to change their information if they are making the common error of reporting your current balance as your credit limit. You can also always phone the offending credit bureau and follow up with a letter and ask them how exactly how they are reporting your balance and request that it be done properly.