Credit Cards

[beautybrainsbooty]

Is it better to have lots of cards with decent limits (less than 1000 limits) or better to have say three big boys with heavy limits? (5k and up) Does it even matter? What looks better to the scoring system or does anybody know?

[madmann26]

I've been told less cards with higher limits by a couple of people here.

[beautybrainsbooty]

thanks MM!!! I thought so too, but I see lots of people with sigs and 14 cards. I personally would rather have three cards with 15-20k across the three than a whole bunch of cards to keep up with. Just my thoughts though everybody is different lol

[navigatethis12]

Some scoring models will say limits are too low so that is bringing down the score. These same scoring models will say limits are too high so they are bringing down the score. I do not think it really matters to lenders looking at reports, unless you try for a card with a minimum credit limit requirment. If you have a young history they may be apprehensive about granting a larger credit limit than you already have.If you let balances report, higher limits will make it look like you are not using so much credit.

[LS2982]

If you have lots of cards, as long as there is plenty of age to them and payment history that's just fine as well. It's when you have a lot of new toy limit cards that looks bad.

[beautybrainsbooty]

thanks yall. this makes perfect sense to me

[Dustink]

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beautybrainsbooty wrote:

Is it better to have lots of cards with decent limits (less than 1000 limits) or better to have say three big boys with heavy limits? (5k and up) Does it even matter? What looks better to the scoring system or does anybody know?

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A variety doesn't hurt as long as you keep up with them.

You can have a card with a $100 limit and still get a card with a $20k+ card. (I have seen this before)

It just depends on all the other factors in your credit report as well as your income to support the cards.

[Koop10010]

I prefer the few cards with good limits compared to the piles of cards with toy limits.  As far as score, I don't think it is a direct factor.  Even if for some reason having piles of toy limits helped your score more than a few good cards, wouldn't you rather have a few good cards compared to a pile of toy cards?

[youngandcreditwrthy]

Well.. Personally... I like having a lot of cards with high limits :-D

Hehehe... And that is what lenders like to see... A lot of positive accounts with a tooooonnnn of available credit...
Of course, I have no $20k limit card yet. LOL

[Dustink]

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youngandcreditwrthy wrote:
Well.. Personally... I like having a lot of cards with high limits :-D

Hehehe... And that is what lenders like to see... A lot of positive accounts with a tooooonnnn of available credit...
Of course, I have no $20k limit card yet. LOL

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Unless, your income does not support that. Then it is possible to get declined for CLI's and installment loans, for having too much available credit.

But,

+1

If your income supports it. Then, that is the best way to go.