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Credit Line Question

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jamesdwi
Valued Contributor

Re: Credit Line Question


@Anonymous wrote:

So I am in college and got my first card in Decebmer. It was the Discover it Chrome for students 500SL but got it to 1000 two months ago. I also got the capital one journey card two weeks ago for 300 Sl. I also got the Bank of America Cash Rewards the other day 500 SL. I know some creditors do automatic credit limit increases. Is there a way I can stop them from doing automatic CLI? Or would I have to ask to decrease it when the auto CLI?  I don't need any more credit. 1.8K is plenty for a junoir in college and I wont want any more. I just want to garden with this limit untill i graduate college. Thank you for helping me get my credit journey going.


 

 

yes you can ask for your credit limit reduced. But relize when a lender gives you a credit limit, they don't expect you to use it all. For best FICO scoring, its best to let only 1-9% report on a single card. You are starting out, here is where you learn that just because you have a credit limit, its not a goal to max it out. Most lenders expect you to use 30% of your credit limit, so your 1000 limit card, they expect that you use less than $300 of it. They will allow you max it out, which is anything over 80%, But the underwriters at your lenders would much rather see you use no more than %30 percent. Learning to be responsible now, is a great start to your financial future. 


Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 11 of 16
HeavenOhio
Senior Contributor

Re: Credit Line Question

Yeah, below 30% (28.9% or below) is considered to be responsible. 8.9% or below is a step above that and optimizes scoring.

 

If you're concerned about over-spending, most cards offer an e-mail option for "spending threshold" or "approaching limit" or whatever, and they allow you to choose the amount that will trigger notification. Set the amount really low if you'd like. I think mine are in the ballpark of 15% of my limits.

Message 12 of 16
Anonymous
Not applicable

Re: Credit Line Question


@EAJuggalo wrote:

What is being with one of those big banks doing for you?  Why don't you start a relationship with a good Credit Union?  They generally get you much more for you money and will have much better interest rates for those big purchases.


Generally the big banks have better rewards programs (both earning rates and redemption options). Although CUs are great for low APR cards. However, since I never carry a balance, that is irrelevant to me (and hopefully most people here).

 

That being said, establishing a relationship with a good CU can be helpful when looking for car/home/personal/student loans.

Message 13 of 16
Anonymous
Not applicable

Re: Credit Line Question

I have heard bad things about BOA closing credit card accounts for many reasons and that scares me. Ik they love to do reviews. My income will decrease this year because I have been waiting a month on an outstate backround check from the state I go to school to start my summer job back home.  So as you all know I have 3 Cards opened sense Dcember of 2016 and started my credit then.  Discover is 1K, Cap one 300, and BOA is 500. So now my income will drop Smiley Sad. SO i have 1.8K in credit to like 4-6K income but 10K in assets. My credit builder loan started to report yesterday at a balance of 506. So how do I not get tartgted by BOA? I plan to switch to them after I leave school. Because there is 3  inquires but four accounts can they see that its a secured credit builder loan? Im just woundering if BOA will see me as a risk with 4 new accounts from December- May I plan to have all these cards age together. The CB loan is to help show I can manage different types while im in college and save haha!. After the CB loan, I plan to put it in my IRA. Any advice is welcome and thank you for getting my credit journey started.

Message 14 of 16
Anonymous
Not applicable

Re: Credit Line Question


@Anonymous wrote:

I have heard bad things about BOA closing credit card accounts for many reasons and that scares me. Ik they love to do reviews. My income will decrease this year because I have been waiting a month on an outstate backround check from the state I go to school to start my summer job back home.  So as you all know I have 3 Cards opened sense Dcember of 2016 and started my credit then.  Discover is 1K, Cap one 300, and BOA is 500. So now my income will drop Smiley Sad. SO i have 1.8K in credit to like 4-6K income but 10K in assets. My credit builder loan started to report yesterday at a balance of 506. So how do I not get tartgted by BOA? I plan to switch to them after I leave school. Because there is 3  inquires but four accounts can they see that its a secured credit builder loan? Im just woundering if BOA will see me as a risk with 4 new accounts from December- May I plan to have all these cards age together. The CB loan is to help show I can manage different types while im in college and save haha!. After the CB loan, I plan to put it in my IRA. Any advice is welcome and thank you for getting my credit journey started.


Where did you hear bad things about BOA closing accounts for too much credit? If anything all I been hearing is the opposite how BOA grows quick and gives higher limits to people who started with low limits, basically extending them more credit with growth of the account lol. 

Message 15 of 16
Anonymous
Not applicable

Re: Credit Line Question

OP you are over thinking it.(while good to think about your credit and being proactive...) Just keep up with those cards and let them mature. Even with an income drop dont worry as long as you dont over overspend. You wont be at that income forever.

 

I would of advised against that installment loan just for your credit report... It is not necessary. Your score would have grown just fine and in your future you could of obtained a car loan or the like.

 

Also ALL banks/cards have bad things about them, some just worse than others and for every bad there is usually 1000's of goods. No financial institution is perfect.

 

Message 16 of 16
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