Credit Cards

[PositiveChange]

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

[Creditaddict]

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.

[athensguy]

Where is that message coming from? (what website I mean)

[PositiveChange]

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?

[Creditaddict]

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.

[debtisgood]

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.

[woopah]

---

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.

[debtisgood]

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

[fused]

---

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.

[PositiveChange]

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.