Why isn't myFICO simulator more frank about the impact of credit card limit ?

[Anonymous]

I've consolidated my four chase credit cards into one with 22K credit limit, and despite my closure of three accounts in the process, my FICO boosted by 5 points from this move.

I advised my aunt to increase her Amex line from a pathetic $1,800 to at least $8K alas amex is no mood nowadays to increase lines (rather they decrease them).

I think the best way to quickly boost a credit store is to manage to increase one's credit line. When I was 19 a banker friend approved me to a $5000 card (all I had was a $1000 credit card). Due to this, and with no other mix of credits, I reached a FICO of 760 by 21, and was given best mortgage rates.

I wish myFICO provide a better simulator since as of now it doesn't divulge the significant impact a higher credit line will have on the FICO score. For example, I've entered the situation when I've been approved for a  1K limit credit card versus a situation when I've been approved for a 100K limit credit card. And both cases showed the same range. I have a feeling that FICO statistical model, all things equal, regards those who have been approved for a 100K credit card as super safe, and must boost their scores up to the roof quickly.

Message Edited by sc98007 on 04-21-2009 02:14 PM

[haulingthescoreup]

Nope, no reward simply for having big limits. The score reward is for the resulting lower util, if your reported balances stay about the same. (Util being reported balances divided by reported credit limits.)

There is often also a score improvement for simply getting a new CC, if one has only had a few.

[llecs]

I've mentioned this before, but I saw a post once somewhere of a poster who only had about $1000 in total CLs between three or so CCs. Her AAoA was super high and had scores around 810-820ish or so. It was super impressive and gave me hope early on in my rebuilding that having $10k+ CLs would be desirable, they weren't necessary for a high score.