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Established Member
firedogut
Posts: 28
Registered: ‎03-26-2010
0

can a high Credit limit hurt you?

i'm trying to learn everything i can about what helps/hurts your credit.

 

Does having a high credit limit ever hurt you?   Even if it does not affect you score do banks look at it?


Starting Score: TU: 790 EX:792
Current Score: TU: 804 EX:809
Goal Score: Both above 830


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Frequent Contributor
austinguy907
Posts: 304
Registered: ‎03-03-2008
0

Re: can a high Credit limit hurt you?

High limits are always good!  High balances are always bad!  That's about it :smileywink:

Scores by lender CLI requests 4/15/14: EQ 760 / TU 755 / EX
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Scores by lender 4/25/11: EQ 705 / EX 743 / TU 735
Mortgage closed 5/20/2011!
Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: can a high Credit limit hurt you?

You can be declined for more credit if you have high limits w.r.t. your income. 

Frequent Contributor
manyquestions
Posts: 299
Registered: ‎10-20-2008
0

Re: can a high Credit limit hurt you?

High limits never hurt your score but they can hurt your chances of getting approved for something.  I have been declined for "sufficient credit with other lenders"  no balances, just available credit like a couple of 30k limit cards with a 0 balance.  THey say I have too much available credit for my income which is understandable. My credit limits total about 3x my income. I always pay in full, so there is no debt, but the available credit compared to income can scare away new creditors.  I converted some to signiature cards so the limits don't show.  Even if you don't need credit, there may be generous promos that you want to take advantage of from time to time.

New Contributor
ocboy949
Posts: 163
Registered: ‎03-04-2010
0

Re: can a high Credit limit hurt you?

High limit doesn't hurt you. Does the opposite, really.

 

But what may hurt you about a high limit is the obvious, you'll be tempted to spend spend spend! Then you'll have a high balance which will hurt you.

 

What I learned about cards is that if you get a nice high limit and don't really necessarily need the credit, and the CC doesn't have an annual fee, go ahead and shred that card up so you can't use it and will just have a nice credit-debt ratio. May seem rather silly but will help you later on if you want to buy a new car or get a mortgage.

TU FICO - 752 (8/12/11)
EX PLUS - 721 (8/9/11)
EQ FICO - 648 (2010)

(21 years old)
Moderator Emeritus
Lel
Posts: 5,267
Registered: ‎03-18-2008
0

Re: can a high Credit limit hurt you?

 


ocboy949 wrote:

High limit doesn't hurt you. Does the opposite, really.

 

But what may hurt you about a high limit is the obvious, you'll be tempted to spend spend spend! Then you'll have a high balance which will hurt you.

 

What I learned about cards is that if you get a nice high limit and don't really necessarily need the credit, and the CC doesn't have an annual fee, go ahead and shred that card up so you can't use it and will just have a nice credit-debt ratio. May seem rather silly but will help you later on if you want to buy a new car or get a mortgage.


 

 

These days, prolonged inactivity on an account can easily lead to a cut in credit limit or involuntary cancellation of the card.  I had both happen to me over the course of the last year.

 

If you have a high CL card, I'd recommend using it at least once every few months to try to stave off any adverse action.  You can PIF before the statement date if you need to have it continue to report a zero balance to the CRAs.

Established Contributor
beenthere
Posts: 971
Registered: ‎01-13-2008
0

Re: can a high Credit limit hurt you?

I'll let you know shotly. LOL

My best card is a Juniper Mastercard with a %12 apr. Juniper is famous for cutting credit limits when it sees other activity in your spending that it deems a threat to them such as aply for a new credit card elsewhere. It is becuse Juniper is so jumpy in that way that I am going to aply with Nevada Federal CU today and I have been pre-aproved and they promise to never make Big Bank fickled moves on my new VISA if I use the card in a normal way. I fully expect Nevada Federal to grant me a high limit relative to my Juniper account. I fully expect Juniper to greatly reduce or close my account with them though our history with each other has been flawless.

 

Another one I'm watch is GEMB. I have a $4500 limit on one of their store cards. Do to both a very moderate amount of activity and the opening of a large credit line relative to my income I fully expect to see adverse actions from them as well. Lets watch and see.

1-14-08....... TU=683, EQ=667, EX=666
7-04-08....... TU=688, EQ=678, EX=682.......
.......4 of my 5 cards and a new car later.
2/13/09 and forever EX 693

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