@Anonymous wrote:
Totally understand. But I know at one point even a few weeks back whenever you made your deposit you were stuck with that limit. So today when calling the lady told me u can add just as long as the card wasn't activated which was a big difference from their previous process.
My thoughts behind having a higher limit is to still keep UTI low but show that you are still responsibile and able to handle a larger amount of credit. I think it attracts other creditors as well. I maybe wrong and anyone can chime in...
Later on this holds true (the saying is 'large limits beget large limits'), but when you're just beginning, you only need show a few months of good payment history on a few small secured cards. Think of these cards as training wheels. As soon as you can get unsecured cards, you close them.
Creditors would much rather see how you handle multiple accounts without problems, than one larger limit account. Thats why FICO looks for multiple accounts and gives you points for them, but does not give you points for increasing your limit on a single account (UTI% is a different issue).
