Tiny credit limits: Are they good, bad or indifferent?

[pdxuser]

---

@Not_the_Point wrote:

I pulled my Experian report recently and one of the negative factors on my Credit Score was that most of my Credit Cards have a low limit on them, my highest being $1400 on my Sears store card and my lowest being $500 on BoA Secured VISA.

I'm trying to figure out what to do to get these limits increased without incurring the wrath of the Inquery since I want to buy a house soon but so far I'm short on ideas.

---

According to DallasLoanGuy, "The amount of your credit lines are ZERO part of the approval process." And that's specific to mortgages, so you may not be in bad shape.

Also, I thought I had read everything that affected a FICO score, and CL didn't seem to be a factor, other than how it affected your util. So I'm not sure why low CLs would be a negative factor for your score. I can see why it could affect whether you're approved, but it would surprise me to learn that it affects your score beyond its role in your util.

Also, are  

[pdxuser]

---

@laz98 wrote:

i'll join you in this boat.  i'm in the same situation.  bank of america declined me for even a secured card because of my low CLs.  not really sure how to get myself out of this one!  

---

That seems weird. If they give secured cards to people with no credit, it seems like low CLs shouldn't be the problem. A low CL is still greater than a $0 CL, after all. Are you sure it couldn't have been high util compared to the CL or some other factor? How low are we talking?

[Not_the_Point]

That's certainly welcome news, I was really concerned about what effect my total credit would have on my chances of getting a loan... but if the low CL on the cards is affecting my actual score, then it is indirectly posing a challenge to getting a mortage, isnt it?

I was very surprised too when I read my Experian report that the low CL on my cards was hurting my score. I had never heard of that before on these forums. I would still like to figure out a way to raise these without getting any inqueries on my report, simply because it might help my Experian score (not sure if it would show up on the EQ or TU report) for when I submit my application.

[laz98]

---

@pdxuser wrote:

---

@laz98 wrote:

i'll join you in this boat.  i'm in the same situation.  bank of america declined me for even a secured card because of my low CLs.  not really sure how to get myself out of this one!  

---

That seems weird. If they give secured cards to people with no credit, it seems like low CLs shouldn't be the problem. A low CL is still greater than a $0 CL, after all. Are you sure it couldn't have been high util compared to the CL or some other factor? How low are we talking?

---

they listed their specific reasons for declining me as:

1)  past derogatory accounts (i have 2 charge-offs on my credit still)

2)  too many credit card accounts with very low limits

i thought to myself:  If i can't get a better card, how can you expect me to have higher CLs?

[laz98]

now that i remember, dell said exactly the same thing.

[laz98]

---

@pdxuser wrote:

---

@laz98 wrote:

i'll join you in this boat.  i'm in the same situation.  bank of america declined me for even a secured card because of my low CLs.  not really sure how to get myself out of this one!  

---

That seems weird. If they give secured cards to people with no credit, it seems like low CLs shouldn't be the problem. A low CL is still greater than a $0 CL, after all. Are you sure it couldn't have been high util compared to the CL or some other factor? How low are we talking?

---

i forgot to answer this, my apologies for posting 3 messages in a row!

my CCs range from $300 to $700, from an age of less than a month to 4 years & 3 months.

(i will quickly run away now to hide from my shame)

[pdxuser]

There's no shame, this board has certainly seen more shocking states of affairs than low CL's. But the note said too many low CL's, so I'm curious how many of these little guys you have, if you're willing to share? Maybe BoA was inferring something because your cards grew in quantity rather than quality, that is, that you got more cards with low CL's rather than CLI's on the cards you had?

Message Edited by pdxuser on 10-19-2008 12:02 AM

Message Edited by pdxuser on 10-19-2008 12:03 AM

[laz98]

---

@pdxuser wrote:
There's no shame, this board has certainly seen more shocking states of affairs than low CL's. But the note said too many low CL's, so I'm curious how many of these little guys you have, if you're willing to share? Maybe BoA was suspicious that your cards grew in quantity rather than quality, that is, that you got more cards with low CL's rather than getting CLI's on the cards you had?

---

before this month, i had 5 cards.  no, make that 6--i keep forgetting about my target red card.  this month, i decided i would go on an app spree to try & a) get better accounts to improve my credit & b) get accounts i would actually like to have.

all of my cards are sub-prime, because i messed up my credit before.  unfortunately, they are not the CLI-giving type, so i'm stuck with these lame limits.  i don't want to close the accounts because i need the history.

i applied for bank of america BEFORE i applied for anything else though, so i don't see that 6 accounts is really that bad.  but obviously they disagreed.  

it also upsets me because only 1 of these accounts has any lates on it, & those are from 2005.  i'm in the process of GW'g them, but still, i think i've shown that i can be responsible.

anyway:  i opened a capital one card ($300), a ny & co card ($300), an ultra diamonds card ($400),  a care credit account ($5000), & a crown jewelers account ($2500).

[pdxuser]

What's the distinction between prime and subprime cards? Are credit union Visas prime? 

[laz98]

i can't answer that, i don't have one (i bank with chase).

sub-prime cards are cards from places like First Premier, Credit One, Orchard, etc.  they generally approve anyone, no matter how bad your credit is.  & mine was horrible about 5 years ago, when i first started trying to rebuild it.  my scores were barely in the 500s.  it's not much better now, but i'm still working on it.