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Does average credit line has any effect on credit score?
When I pulled my free credit score from US Bank Cash + website, in one of the notes, it mentioned that my average credit line higher than $9000 is helpful. The average was higher earlier but with only $1000 from Target Redcard last month, it may have come down.
I donot find lot of discussion on this point therefore was wondering how important average CL is.
I think this may pertain only to FAKO scores, but I recall some years ago that on EX monitoring, one of the negative reason codes was that my total (not average) was less than $2K. However I have not seen anything to back this up for real FICO scores. I would think that on a manual review it might be an issue but maybe on computer generated approvals its not such an issue as long as your util is low. I'm just throwing out something here because this question has been on my mind as well.
@Rhaeny wrote:I think this may pertain only to FAKO scores, but I recall some years ago that on EX monitoring, one of the negative reason codes was that my total (not average) was less than $2K. However I have not seen anything to back this up for real FICO scores. I would think that on a manual review it might be an issue but maybe on computer generated approvals its not such an issue as long as your util is low. I'm just throwing out something here because this question has been on my mind as well.
Yep. Many FAKOs factor in CLs. FICO's don't. VantageScore does but while it isn't a FAKO (doesn't have a FICO like range) it isn't used by more than a few creditors for decisioning) . Banks may suppliment FICO scores with other info such as CLs. If any decisioning lists this as a factor then it is but it's not a factor in FICO.