Higher Credit Limit?

[PapasWifey]

Thank GOD that after my 77 point drop on Tuesday, I have regained 20 of those points back today (due to util% going from almost 100 down to 0). In any event, my question is does it matter (FICO wise) if there is a higher credit limit on a card if the util reports at 0 every month? Like, could the mere fact of having a higher limit cause an increase if no other factors change?

I am considering keeping my Cap 1 secured card and just increasing the limit quite a bit (so as to report a higher credit limit), but only if it could help. That card is always PIF.

Advice?

[Cdnewmanpac]

No. The amount doesn't matter, just the percentage. Fico considers a $50 balance on a $500 card the same as $500 balance on a $5000 card.

[hilltro]

Hello,

I will say on my Transunion and Experian (Not sure about Equifax) One of the reason for my adverse score was low credit limits. Not sure if this alone would raise a score but they report that as a reason for a lower score.

[Anonymous]

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@hilltro wrote:

Hello,

I will say on my Transunion and Experian (Not sure about Equifax) One of the reason for my adverse score was low credit limits. Not sure if this alone would raise a score but they report that as a reason for a lower score.

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You were getting a FAKO score.  I know this because you cannot get your own EX FICO score.  FAKO scores are just that, fake.  One common thing I have seen is that they actually consider the amount of your credit limits.  FAKOs are not used by any lenders and often give bad advice.  Some of this advice can actually be counter productive to raising your real FICO score.

[pizzadude]

+1. Ignore scoring advice unless it is from FICO.

FICO scoring only cares about revolving utilization ~ not about the size of your credit limits.

[hilltro]

Sorry Should have clarified it was directly from them. Was not sure if FICO counted it but now I am aware. Although a correction needs to be made... I do get my EX FICO.. hehe

[RobertEG]

While I agree that a 50/500 util is the same as a 500/5000 util, percent util is not the only scoring factor.

FICO apparently also scores, in some unspecified manner, the total debt.

Thus, while % util may be the same, I dont believe it is accurate to conclude that it doesnt matter in final FICO scoring.

[esme]

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@RobertEG wrote:

While I agree that a 50/500 util is the same as a 500/5000 util, percent util is not the only scoring factor.

FICO apparently also scores, in some unspecified manner, the total debt.

Thus, while % util may be the same, I dont believe it is accurate to conclude that it doesnt matter in final FICO scoring.

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I would like to add that even though your % util may not be very high in relation to your total credit available, maxing out one credit card amongst having $0 balances reporting on all other ccs can't be good either.

[PapasWifey]

So would having a higher limit on a cc improve the chances of getting improved for a better limit once eligible for better cards? Or is it dependent upon the other factors like credit score, baddies, income, etc?