Credit card limit question

[lys]

More importantly you do not want to use more than 15%-20% of your allowable limit on any card for best credit ratings.
Do you really need all your cards? Get rid of cards you rarely use and have short history of ownership.
As for high credit limits - it will not hurt ---- as long as you do not use that high limit.
And of course - best to pay in full each month.

[scout8]

If I am understanding your question correctly, you are asking if there is any issue in having high credit limits. Is that correct? I did get denied a new credit card once because they said I already had too much credit available (even though I never used all the available credit and paid it off every month). I do not know if it had any issue on my credit score, but I don't think it did.

[Deleted]

I'd transfer the limit, I see no reason not to transfer it.

What lys said is only partially correct. Utilizing a small percentage is good for the credit rating. However, credit card companies report your balance to the bureaus a few days after your due date, so you could technically max them out every month, pay it off in full by the due date, and still have a $0 balance reported to the bureaus.

[aurora]

The two main factors that have been brought up - use of credit as a % (want to keep that low-ish) and total available credit - are the only big arguments I'm aware of for someone who pays off their cards every month, which I assume you do. Of course the former supports transferring the limit and the latter supports not.

I guess the third question is whether you plan to use your credit for a big purchase in the near future. I think you've said you're not planning to buy a house in the near future, and I know you're not interested in a really fancy car, so in your case it probably won't make much difference either way.

[pamela]

Aug 29, 2015 10:29:06 GMT -5 papiercherri said:

I'd transfer the limit, I see no reason not to transfer it.

What lys said is only partially correct. Utilizing a small percentage is good for the credit rating. However, credit card companies report your balance to the bureaus a few days after your due date, so you could technically max them out every month, pay it off in full by the due date, and still have a $0 balance reported to the bureaus.

I always pay in full but the balance reported varies because paid in full is paying the balance at the statement date, but then I spend between then and the due date.

[Mushe]

I have transferred balance on Chase cards a few times in this kind of situation, and so far have not had any issues with a cc company saying I have too much available credit. If that happened, you can always just call and ask that it be reduced.

[moolarkey]

for loans and other credit, they look at your total number of cards, balances, how many times youve been late but what they are mist looking for is credit potential - how much could you charge ff you are applying for a mortgage and you have 1 card and coulc dcharge 100k on it, but only have 2k right now, as soon as your sign that mortgage and take on that payment you could go out and charge another 98k onthe credit card which makes that paynent much higher and you also have the payment on the mortgage which could result in your not making the mortgage payment. Dis the way I said that make sense?

They aren't just looking at total cards, balance on cards, limit on cards. They are looking at your total balance on all cards, total limit on all cards and then looking to see how much more you could charge before you max them all out - what is your debt potential.