These are cues people use to determine how much status a person holds and how they should be treated. Such symbols can include possession of socially valuable attributes, like being conventionally beautiful or having a prestigious degree. Wealth and the display of it through conspicuous consumption are also indicators of status.
Benefits. However, the benefit of requesting a credit-line increase can outweigh the potential negative consequences of the credit inquiry. For example, say a consumer has a balance of $1,800 on a credit card with a $2,000 limit.This is a high balance percentage--another factor than could decrease a FICO score.any factors, such as amount of debt, number of accounts, judgments, credit line increases (and decreases), and credit inquiries affect the credit score.
When Limit Increases Hurt Credit Scores. Credit card limit increases initiated by the account holder tend to hurt credit scores. The request signals future changes in spending and borrowing behaviors. A pending change in consumer behavior has a far greater predictive value of future delinquency than a bankâs opinion.