Figures are not exact.
So how does revolving credit lines affect your score? What if you took 3 credit reports that were all exactly the same. The only difference would be credit lines.
Person A. has 3 credit cards.
Each has a CL of $300.
Total CL combined is $900.
Person A. charges $850 on a CC only paying the minimum. Credit score is 580.
Person B. has 3 credit cards.
Each has a CL of $1,000.
Total CL combined is $3,000.
Person B. charges $850 on a CC only paying the minimum. Credit score is 670.
Person C. has 3 credit cards.
Each has a CL of $3,000.
Total CL combined is $9,000.
Person C. charges $850 on a CC only paying the minimum. Credit score is 700.
Here's the catch. Person A, B and C are the same person. This person was able to get credit line increases affecting UTL. Nothing else was changed.
---------------------------------------------------------------------
How about this. Same figures.
Person A. has 3 credit cards.
Each has a CL of $300.
Total CL combined is $900.
Person A. charges $85 on a CC only paying the minimum. Credit score is 700.
Person B. has 3 credit cards.
Each has a CL of $1,000.
Total CL combined is $3,000.
Person B. charges $283 on a CC only paying the minimum. Credit score is 700.
Person C. has 3 credit cards.
Each has a CL of $3,000.
Total CL combined is $9,000.
Person C. charges $850 on a CC only paying the minimum. Credit score is 700.
---------------------------------------------------------------------
In short don't ask for CLDs and if you have low credit limits compensate by keeping balances lower. UTL is the key.
