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Contributor
PositiveChange
Posts: 103
Registered: ‎09-27-2007

What is considered a low credit limit? I have this message as one of my credit scoring factors.

It must be hurting my score.  It is one of the indicators "you have low credit limits"
 
Soooo...anything below what is a low credit limit?
 
Thanks
Mega Contributor
Creditaddict
Posts: 18,877
Registered: ‎10-23-2007

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

well back in the day, under 5k was classic, 5-10 was gold and over 10k was platinum.
Discover if you remember also had a black classic if under 5k and platinum for anything above 5k.
the lines of platinum have been WAY ruled out now, kind of sad, you can get a platinum HSBC card with a 300 limit!
 
I still like the 5k limit number, but im sure less would still qualify as high.
Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Valued Contributor
athensguy
Posts: 1,291
Registered: ‎02-26-2008

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

Where is that message coming from? (what website I mean)
Contributor
PositiveChange
Posts: 103
Registered: ‎09-27-2007

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

Credit Check Total.  I do for sure have one card under $1,000, kept it for history, rebuilder  creditone.  Are $2,000 cards considered low limit?
Mega Contributor
Creditaddict
Posts: 18,877
Registered: ‎10-23-2007

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

I guess it also depends what bank the card is with. $1000 with Credit One is really high if you ask me, but my $500 at BofA is really low considering how high they can go!
and depends what's high for you, if you just starting out fresh or rebuilding, $2000 might be very high vs. say your parents who have had credit for over 40 years.
Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Valued Contributor
debtisgood
Posts: 1,126
Registered: ‎03-25-2008

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

FICO doesn't use limit size as a factor in its scoring (though the % of that limit utilized is). I would ignore that message. Of course properly handling larger lines of credit look better on manual review so there is some benefit to them (just not in FICO scoring).
 
Personally I mark anything over 3k as above rebuilder credit and anything over 10k as a major credit line. True high lines to prime banks might be 15k + though. It is all in the eye of the beholder.
 
 
Established Contributor
woopah
Posts: 721
Registered: ‎03-15-2008

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.



PositiveChange wrote:
It must be hurting my score. It is one of the indicators "you have low credit limits"
Soooo...anything below what is a low credit limit?
Thanks





I think it depends on where you are in your building/rebuilding.

There was a time when a 1K card was very high, in my opinion. Now my 1 $500 and my 1 $1K cards are low to me because I've got cards close to and over $10K.

In regards to your credit score, if you're under 10% util, I don't see how your credit limit could be affecting your score, regardless of what it is. If on the other hand you're your util is high, having higher credit limits would lower your util and then raise your score. Or you could just pay down on your cards.
4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Valued Contributor
debtisgood
Posts: 1,126
Registered: ‎03-25-2008

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

[ Edited ]
I also recommend the original poster read: http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=29793 for the Credit Scoring 101 section on FICO vs "FAKO" scores. True credit is a supplier of FAKO's.
Edited to repair CS101 link
Message Edited by llecs on 11-26-2008 04:07 PM
Moderator Emeritus
fused
Posts: 16,253
Registered: ‎03-12-2007

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.



PositiveChange wrote:
Credit Check Total.  I do for sure have one card under $1,000, kept it for history, rebuilder  creditone.  Are $2,000 cards considered low limit?


What's important is FICO doesn't care. This is why we tell everyone to disregard any comments associated with FAKO scores.
Credit Cards:
Amex BCP 25K ~ Amex Clear 25K ~ Amex Platinum NPSL ~ Chase Freedom Visa 19.3K ~ CITI Dividend World Mastercard 20.3K ~ FIA Fidelity Investments Platinum Plus Visa 40K ~ First Hawaiian Bank Gold Visa 10K
Contributor
PositiveChange
Posts: 103
Registered: ‎09-27-2007

Re: What is considered a low credit limit? I have this message as one of my credit scoring factors.

Thank guys!
 
Here is the exact message and yes it is from a fako site, I suppose anything outside of fico is fako.
 
Having low credit limits on your accounts and loans counts negatively against your credit score. Having a high amount of credit is a positive factor because it indicates to lenders that other creditors have trusted you by lending you money in the past. However, since your major credit card limits are generally low, lenders may think you dont have enough experience with high limits.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
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