One of my friends told me that having a card with a low CL (like below 1k) does little to nothing for your score. I looked through the credit scoring guides, and haven't found anything to back him up. Is there any truth to that?
I ask because I'd like to app for a secured BoA visa, but the collateral deposit doesn't bear interest, so I'd prefer only to put like $250 in there. Thanks much
Tell your friend that 8 months ago, I had only one active CC with a limit of $500. My util was 4% and my EQ FICO was 790. You be the judge.
That's pretty good considering the lack of a mix of credit.
FICO does not take into account your limit, only utilization. Although some of the other scoring models I think do and unfortunately some company's are using these newer models.