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Credit Simulator=Highest Credit Limit Isn't High Enough

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Powertripper
Valued Member

Credit Simulator=Highest Credit Limit Isn't High Enough

What's the threshold here to make this not a thing?.....40k, 50k, 60k?

Higher CLI.png

 

Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: Credit Simulator=Highest Credit Limit Isn't High Enough

From what tool are you seeing this particular piece of advice?  Credit Karma?  myFICO?  Credit Check Total?  One of your credit cards?

 

Regardless, as touches your FICO scores, the advice is spurious.  FICO models ignore the size of your credit limit (considered by itself).. EXAMPLE.  Bob has four credit cards.  Each has a limit of $1000, and each is reporting a balance of $70..  Bob calls the four issuers and issuers and surprisingly each raises his limit to $20,000.  Bob's score will not go up by even a point.  The reason is that his utilization was very low before, and it is still very low.

 

VantageScore does care about the size of your biggest credit limit, as well as your average credit limit.  But since almost no lender or CC issuer uses Vantage, I doubt it matters.  And I don't think anyone knows where the thresholds are for Vantage.

 

PS.  There's a weird corner case for FICO where, if the CL on a card becomes too large, then it could conceivably hurt your score, at least in the older FICO models.  But smaller limits (by themselves) do not affect your score, either to help or hurt.  The corner case would be something like this.  Bob has two cards, a Citi and a Chase.  The Citi has a limit of $1000 and a balance of $825.  The Chase has a limit of 10k and a balance of $0.  Bob's total utilization is therefore 7.5%.  Chases then raises his CL to 65k.  The new bigger CL could cause his Chase card to be excluded completely from the utilization calculation, causing his total utilization to go to 82.5% and his score to plummet.

Message 2 of 4
Anonymous
Not applicable

Re: Credit Simulator=Highest Credit Limit Isn't High Enough

Many times these CMS sites will provide fluff statements to try and get someone to apply for another credit card or loan, as they profit from the advertising and helping generating new customers.  A fluff statement could say you don't have a high enough credit limit, or that you don't have enough revolving accounts, or that your interest rate is too high on a loan, etc.  All of these things are geared toward pushing you to app for another product.  9 times out of 10 when reading these things you'll see a link right there on how you can "fix" the "problem" that you are being presented with.  I assume many people must bite on these things, which is why we continue to see them all the time.

Message 3 of 4
NRB525
Super Contributor

Re: Credit Simulator=Highest Credit Limit Isn't High Enough


@Powertripper wrote:

What's the threshold here to make this not a thing?.....40k, 50k, 60k?

Higher CLI.png

 


I agree with CGID and BBS, this is already Not A Thing.

 

What are your two highest limits, just for discussion purposes.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 4 of 4
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