To the best of my knowledge achieving $10,000 credit card limits might be some kind of a FICO scoring threshold. It has been proposed by a "creditable" source that having at least three credit cards each with a minimum of a $10,000 credit limit will maximize the chances of high Fico Scores. My personal observations of my own credit reports seem to confirm this assumption.
My guess is that you might be in a new scoring bucket. A credit limit of $15,000 is a good thing. The higher limit will help you obtain another $10,000 card. You will have to decide for yourself if you believe that it would be to your advantage to set a three card/$10,000 goal.
In any event, never let a temporary drop of a few points cause you to ask for lower limits on your lines of credit. That would be like asking for a cut in pay becuase a recent pay raise caused you to pay more income taxes.
You asked "how much more of a score drop can i expect from this? any ideas?"
There is no way for anyone to give you an acurate answer to that question. It is best to wait and see what actually happens. In any event I would trade higher limits for lower scores anytime. Eventually the higher limits will lead to higher scores.
Message Edited by CreditAble on 08-19-2008 03:04 PM
Message Edited by CreditAble on 08-19-2008 03:13 PM
"do you have any kind of idea how much a loc helps the fico score?"
Scorewise most revolving LOCs would be treated more or less like credit cards.
Most of the LOCs I am aware of seem to be nothing more than a credit card without the card. The terms and fees seem to be the same as a credit card. There might be a difference in coding when reported to the bureaus, which could contribute to the tradeline providing a better mix than just having credit cards.
"you just have a loc for credit needs."
A credit card has a credit limit (instead of LOC amount) for credit needs.
Unlike a credit card you can't make "fee free" purchases with a LOC. Usually, in the U.S. when using a LOC you must pay a transaction fee plus interest from day one of the loan.
"i think they are good. 6.75% interest rate."
Usually an LOC has additional fees similar to BT or Cash Advance fees for a credit card. The LOC terms also state that the interest rate can be raised anytime for any reason. That would mean that 6.75% is nothing more than a "promotional rate" just like a credit card introductory rate. Does your LOC charge fees in addition to the interest rate? Can the bank change the interest rate when ever it wants to? I assume that you do live in Canada and the loan product terms might be different than in the States.
"i am not sure having more cc is the best way of hitting 800+"
Actually I am pretty sure that it is one of the best ways to maximize the potential for 800+. In any event there are plenty of other reasons to have more than two credit cards. Generally two different credit card companies will compete to be in the front of your wallet with higher CLs and lower interest rates. What happens when one of your two cards screw you over or otherwise takes AA (Adverse Action)?
You would be adding a third card in case one of your initial two cards were to take AA. Once AA is taken you might not be able to get the best of terms from a new (3rd) card provider. Some people experienced AA if they had both Bank of America and MBNA credit cards before the merger. I was one of the ones who did not. A Chase credit card with substantially more than a $10,000 limit was prominent on my credit reports warning BoA not to mess with me. As of now I am contemplating my fourth credit card in case either BoA or Chase AA me in the future.
Your only two lines of credit seem to be with the same provider. That is not good. All the eggs in one basket could get smashed at the same time whether you live in Canada or the U.S.
As it stands now it appears that you have a TD Visa Card with a CL of $15,000 and a TD LOC of $10,000. It would seem to me that both should be treated similarly by Fico scoring. In effect, you have two revolving lines of credit with limits equal to or exceeding $10K each. You might consider obtaining one additional credit card to motivate TD to keep treating you well. A new card doesn't have to be a $10K limit in the beginning. If the limit were to grow to $10K over time then you would have your three $10K tradelines. If the limit were to stay under $10K, no big deal. After all, you said that you weren't so sure that "three for $10K" was necessarily good for 800+ in Canada.
"I imagine if i had 2 or more charge off's? and it was only $153 dollars."
Are you really saying that you don't want multiple credit cards because you risk multiple charge offs?
Are you really saying that you don't want multiple credit cards because you risk multiple charge offs?
"but i have been thinking of a mastercard just in case they dont take visa. ill have to find a good bank that offers them."
Now there ya go....
