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Frequent Contributor
jaysdad2k
Posts: 368
Registered: ‎02-07-2008

Too Many Low-limit Cards ....How low is too low? How many is too many?

Do CCC's really use that as an excuse to deny?

 

So, if I had Cap One at, say $500 and Cred One at $750, would it really look better on INQ that they were closed by consumer instead of simply SD'ed?

 

I got Orchard up to $1,000. Is that high enough?

 

 

 

 

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4/11 TU 743 4/11 EQ 763
Established Contributor
Pappy214
Posts: 794
Registered: ‎08-05-2008

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Good for you on the Orchard, I have yet to see a third zero added to my accounts! (Of course since they are both secured I would at this point have to add that zero myself) :smileywink:
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Valued Contributor
debtisgood
Posts: 1,126
Registered: ‎03-25-2008

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

I think it is more important to eventually get one with a moderate to high limit than to worry about the number with a low limit. If your scores rise, use positive history on those accounts to get a card with a bank that is generous with limits, such as BoA. That way, in a year or so you will have a 5k + credit line and manual reviews won't key in on small limits.
Established Member
clownazonah8r
Posts: 29
Registered: ‎11-17-2008

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

I know where you're coming from..... I have a bunch of credit cards...Limits range from $300 to $750....

   Merrick Bank $750

   Cap one $500

   Bof A Visa $500

   USAirways Visa$500

   1st Premier Master Card $425

   Orchard Bank MC $300

   HSBC Discover $300  ---just got approved, found out CL

   First Savings Master Card $300

  Credit One Bank $300

  1st Premier Visa $300

  Tribute Master Card $300

 

Most cards are from 4-7 months old...... Cap 1 is 13 mos old, Orchard Master Card 10 months old.....

 

The monthly fees are killing me, but I'm hoping that given enough time they will give me a CLI.... I've paid always before the due date, and more than the minimum.... I'd guess my usages is about 65-70% of my CL.....

  

Regular Contributor
hayhayday
Posts: 208
Registered: ‎10-15-2008

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

I personally, think 1k is the min i would keep granted one of the smallest ones isnt your oldest card and you have a few big cards. When i closed my small accounts(3 of 7) i actually gained a few points
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

A low limit card is less that $5K. $5K is some kind of magic dividing line. I would not close and dump any CC's based solely on the basis of CL alone until you have been able to get one pushed to $5K+. The only other reason to consider closing cards before that would be fees - which are a good reason to dump a lower limit card. When you have a bunch of low limit cards there are just too many benefits related to UTIL to arbitrarily close 'em. Make sure you understand the consequences before closing any account. Closing accounts is not a FICO-wise activity.
Frequent Contributor
Pushto700
Posts: 267
Registered: ‎07-28-2009

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?


clownazonah8r wrote:

I know where you're coming from..... I have a bunch of credit cards...Limits range from $300 to $750....

   Merrick Bank $750

   Cap one $500

   Bof A Visa $500

   USAirways Visa$500

   1st Premier Master Card $425

   Orchard Bank MC $300

   HSBC Discover $300  ---just got approved, found out CL

   First Savings Master Card $300

  Credit One Bank $300

  1st Premier Visa $300

  Tribute Master Card $300

 

Most cards are from 4-7 months old...... Cap 1 is 13 mos old, Orchard Master Card 10 months old.....

 

The monthly fees are killing me, but I'm hoping that given enough time they will give me a CLI.... I've paid always before the due date, and more than the minimum.... I'd guess my usages is about 65-70% of my CL.....

  


bump - would like to know of any results in this current credit climate of having quite a few low limit cards, or if anyone has experienced setbacks from creditors since the new CC law was adopted with (too) many cards. I was denied credit last May, (2009) the reason (from WFB when attaining furniture credit) was that I had "too many unused credit lines". Baiscally having too many credit lines reporting minimal or zero balances.


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Current Score: TU: 671 (3-10) 625 (4-10/Rebucketed)--EQ: 674 (3-10)--EX 630 (Lender 11-09)
Goal Score: TU: 750--EQ: 760


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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

 


Pushto700 wrote:

 

bump - would like to know of any results in this current credit climate of having quite a few low limit cards, or if anyone has experienced setbacks from creditors since the new CC law was adopted with (too) many cards. I was denied credit last May, (2009) the reason (from WFB when attaining furniture credit) was that I had "too many unused credit lines". Baiscally having too many credit lines reporting minimal or zero balances.


Well, that's a different animal, though, isn't it? It's an interesting reason for a denial, but I see all sorts of chances for confusion on this thread, lol, by entangling two discussions. :smileyvery-happy:

 

 

So you're bumping to ask if anyone has been denied specifically for "having too many low-limit cards", correct? Or if they've also gotten any other negative feedback from a lender for this reason?

 

I know that it's a popular FAKO comment.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Frequent Contributor
Pushto700
Posts: 267
Registered: ‎07-28-2009

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?


haulingthescoreup wrote:

 


Pushto700 wrote:

 

bump - would like to know of any results in this current credit climate of having quite a few low limit cards, or if anyone has experienced setbacks from creditors since the new CC law was adopted with (too) many cards. I was denied credit last May, (2009) the reason (from WFB when attaining furniture credit) was that I had "too many unused credit lines". Baiscally having too many credit lines reporting minimal or zero balances.


Well, that's a different animal, though, isn't it? It's an interesting reason for a denial, but I see all sorts of chances for confusion on this thread, lol, by entangling two discussions. :smileyvery-happy:

 

 

So you're bumping to ask if anyone has been denied specifically for "having too many low-limit cards", correct? Or if they've also gotten any other negative feedback from a lender for this reason?

 

I know that it's a popular FAKO comment.


LOL, ok...kinda of a mangled thought. I guess the denial was something that is afterward or would answer my question after coming to a conclusion about this thread. the gamut is wanting to know of how many is "too many", especially in regard to low limit cards (below 5K).


Starting Score: TU: ?-- EQ: ?--EX 560 (8-08)
Current Score: TU: 671 (3-10) 625 (4-10/Rebucketed)--EQ: 674 (3-10)--EX 630 (Lender 11-09)
Goal Score: TU: 750--EQ: 760


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Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

So, I'm popping back up to the original question.

 


jaysdad2k wrote:

Do CCC's really use that as an excuse to deny?  No.

 

So, if I had Cap One at, say $500 and Cred One at $750, would it really look better on INQ that they were closed by consumer instead of simply SD'ed?  No.

 

I got Orchard up to $1,000. Is that high enough?  CL's don't affect your FICO score.  You will see FAKO advice, given with FAKO scores, regarding low credit limits.  Ignore it - there's no such code, therefore no such score hit, for low CL's.

 

And, once again, I have to pipe in with DH's lovely 800+ FICO score with only one CC open - and it had a $500 CL.

 

Please please ignore FAKO advice.  I would hate to see someone close low CL accounts in an effort to please FAKO website advice, when it has no positive impact on your FICO score.  In this case, it could hurt your overall utilization and cause some FICO damage.

Glad you're checking in on this website - you'll get some solid info here, and you'll hear from lots of helpful informed folks.

 

 

 

 


 

Just puttin' syrup on something, don't make it pancakes.

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