Once a month, industry expert John Ulzheimer answers your credit questions, curiosities, and conundrums. 

Q: Instead of opening a new account, which would lower the average age of my credit accounts, should I increase my credit limit on a secured card? Currently it is at $800. I could deposit another $200-$300 to raise my limit.

A: Without knowing anything about the age of your accounts, $200 to $300 isn’t a very meaningful credit limit increase in the grand scheme of things. If your goal is to use a credit limit increase to lower your credit utilization ratio, $200 to $300 probably won’t have a huge impact. On the other hand, opening a new credit card account could potentially add thousands of dollars to your aggregate credit limit amount, which is much more meaningful.

Remember, although your credit scores will be affected by both the average age of your accounts and…

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