CL is the more the better?

[Anonymous]

IS it true that the more your CL on your CC the better? IF so please explain to me how is that so?

[Creditwiser]

Yes. Its all about UTL and how you appear to other creditors.   If you had a 1k limit card and had to use it for an unexpected car repair for lets say 800 dollars then you would be at 80% UTL on that card. Your credit score would suffer from it until you paid down that balance.  Now lets say you had the same car trouble but paid the 800 with a card that had a 10k limit.  Now you're at 8% UTL.  Your credit score would hardly blink.

Its nice to have cushion with CC's

[Anonymous]

thanks for the reply...But If i paid off that 800$ and leave 1-9% balance it wouldnt hurt my score, in fact it will be good for my score correct?

[MarineVietVet]

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@Anonymous wrote:

IS it true that the more your CL on your CC the better? IF so please explain to me how is that so?

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As far as scoring goes it doesn't matter what the CL is. FICO doesn't look at the amount of available credit; only the percentage of that credit being reported at any one moment in time.

But, as already mentioned, a higher CL does help you manage utilization more effectively month to month.

[Creditwiser]

Yes. Assuming all other account were at zero or very low balance. Remember though, we're taking small score swings between 1-9% balance. This tactic is fun to play with but dont stress over it.  Your scores will always fluctuate and the most important thing to remember is to take care of the account and NEVER be late. Your scores will then follow suit and take care of themselves.  If your apping for a car loan or mtg then you can stress over it a little to make sure you hit you optimum UTL and have your score as high as it can be.

[Anonymous]

Thank you...

I do carefully watch my carry over balance .  I do on planning to purchase a mortage in 2 more years,  any recommendation to get ready from now untill im ready? 

Recently I been apping a lot to get install loan, CC and re-finance my car...I will start to gardening from now untill im ready for mortage.  IS there any important thing I need to know or watch out from not till im ready?

[Creditwiser]

Did I mention NEVER BE LATE, ON ANY ACCOUNT !    Thats your first order of business. If you already have the car loan and  instlallment loan I think youre good to go. Get in the garden and STAY THERE.  Let the accounts age and report all those ON TIME payments. More apping at this point will only lower your AAoA. Not a good thing.  Within the 2 years your CL's will increase on the cards because youve been using them and you were NEVER LATE.  When youre ready to app for the mtg, you can stress out over your UTL to make sure its right where you want it. After that sign the papers and enjoy the house you've earned !

[Anonymous]

I recently have 2 new card from capital one, should I wait for 6months, 12months or 24months to hit the luv botton? Whats the best way to increase my CL beside paying them on time on unsecured card?  I know secured card is to deposit more money.

[Creditwiser]

Yes, you can deposit more on the secured.I would if you had the cash.  For the unsecured. are you on their Credit Steps program ?  If not then wait until your 6th statement cuts and hit the luv button.  If they decline, call them to recon. However youre going to ALWAYS PAY ON TIME so theres no reason they should not give you a CLI.

[Anonymous]

What is exactly Recon mean?  Yes I am in the program. My two new card are the quick silver and the jouney student card from cap 1.  I waited for 6months.  Do I hit the luv botton EVERY 6months?