"Having low credit limits on your accounts and loans counts negatively against your credit score"

[Anonymous]

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.

so this is what I see on the Amex CreditSecure reasoning for what would contribute to lowering a credit score.

So do I close the cards or not?  My util is low enough to do so but I don't want to close until I replace it with a comparable.

But apparently I can't replace it with a comparable until the limit is higher.

But the limit won't be higher until I get a comparable.

But who will give a comparable when the limits are 'low'

And if the limits are low how do I raise them

And if they need to be raised to get low and higher on comparables to raise the low limit to a higher low limit and get another comparable to close and to max out the low percentage to raise the limit to zero out the balance to get a comparable with a low high limit........................

Its enough to make a preacher cuss lol

[p-]

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@Anonymous wrote:

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.

so this is what I see on the Amex CreditSecure reasoning for what would contribute to lowering a credit score.

So do I close the cards or not?  My util is low enough to do so but I don't want to close until I replace it with a comparable.

But apparently I can't replace it with a comparable until the limit is higher.

But the limit won't be higher until I get a comparable.

But who will give a comparable when the limits are 'low'

And if the limits are low how do I raise them

And if they need to be raised to get low and higher on comparables to raise the low limit to a higher low limit and get another comparable to close and to max out the low percentage to raise the limit to zero out the balance to get a comparable with a low high limit........................

Its enough to make a preacher cuss lol

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What I've learned about scoring is for FICO, it's not so much limit as utilization.  And if you keep the cards continuing to request CLI's, your limits will go up.

I'm still new at this, but I got my Orchard to go from like 300 up to 770, bit by bit, now I have 2 cards at 3k, but I think that limit was based more on income.  I have another at 2k.  All 3 are less than 2 months old, but I will ask for CLI at 3-6 months.

If the cards don' cost you anything, keep them open and ask for CLI.

[Booner72]

Ive been told over and over again here at this forum that the credit limit does not matter to FICO.  500 is as good as 5000.  It's the balance that counts.

[GregB]

That is quite true for your FICO score. However, most lenders tend to be shy to be the first one to give you a much-larger Credit Limit.

I do think the "credit advise" comes from a non-FICO source. Sounds like Experian Score aka Plus Score advise. Is that it?

[MarineVietVet]

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@GregB wrote:

That is quite true for your FICO score. However, most lenders tend to be shy to be the first one to give you a much-larger Credit Limit.

I do think the "credit advise" comes from a non-FICO source. Sounds like Experian Score aka Plus Score advise. Is that it?

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I agree with Greg on this. With FAKO scores comes FAKO advice. I would ignore all of it.

And yes the Amex CreditSecure service does have EX Plus scores.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".