topic Re: Are low limit cards a blemish on one's report? in Credit Cards

Are low limit cards a blemish on one's report?

1LostArk — Sat, 20 Jan 2024 20:33:58 GMT

Currently my only personal card with a limit under $10k is my C1 Platinum at a measly $750, which I keep open because it's my oldest. Would this cause any lender to so much as bat an eye when reviewing my report?

Re: Are low limit cards a blemish on one's report?

pizzadude — Sat, 20 Jan 2024 20:39:43 GMT

Probably not, at least I've never heard anyone report this. I doubt that any lender would take AA or deny you credit due to the lowest CL on your reports.

However if ALL your CLs were very low then yes I could see that being someing that creditors would take into account.

Re: Are low limit cards a blemish on one's report?

Horseshoez — Sat, 20 Jan 2024 20:53:06 GMT

I would argue having one card with a high limit carries a whole lot more weight than even having a bunch of cards with low limits. Given all of your cards except one are $10,000+, you're good to go. With this said, I'd either close or sock drawer that CapOne Platinum; it isn't doing you any good. If you close it, the account will remain on your records for about ten more years.

Re: Are low limit cards a blemish on one's report?

Kforce — Sat, 20 Jan 2024 21:21:31 GMT

Agree with everyone else.

Don't think it is a problem

My oldest has $2,000 and all my others $20,000.

I keep it for the 35+ years of age.

They will / do not due CL increases.

Forever stuck at 2k

Re: Are low limit cards a blemish on one's report?

SouthJamaica — Sat, 20 Jan 2024 21:26:01 GMT

No, they wouldn't bat an eye.

Re: Are low limit cards a blemish on one's report?

SouthJamaica — Sat, 20 Jan 2024 21:28:48 GMT

That's not guaranteed. I had 5 closed accounts dropped off of my Equifax report about a year after their closure. One was my second oldest card. As a result my EQ AAoA is 6 months shorter than my AAoA with TU and EX.

Re: Are low limit cards a blemish on one's report?

GZG — Sat, 20 Jan 2024 21:29:28 GMT

the perfect report doesn't have any low limits, but it's all about the context, the history and the story.

in the context of your file, nobody will care.

personally, just close it.

Re: Are low limit cards a blemish on one's report?

TiggerDat — Sat, 20 Jan 2024 21:57:33 GMT

I started coming here to myFICO to better understand and rebuild my credit. From all I have gleened in knowledge abou this is that the low limit won't hurt you.

If all you had was low limits, that would hurt you in regards to your score. When I got my first card over $2000, my score jumped up. It wasn't about usage either, as I was at 10%. There seems to be a bit of adjustment to your score when you get a higher limit, to basically show you have attained something in life.

Dumping your longest card could hurt your score a little. I did at some point dump my oldest card, because it was a secured card. My score dropped a little and might drop a little more when I dump my CapOne (Pronounced like the gangster, ). However, at some point, it's just best to drop the cards that you don't need, also, as long as there is no fee, then why bother unless it won't really matter?

Re: Are low limit cards a blemish on one's report?

Jeffster1 — Sat, 20 Jan 2024 22:04:43 GMT

@SouthJamaica Exactly. I've experienced that too.

I had a Jasper Mastercard with a 5K limit which I opened in February 2021. Good card; No AF. But the company which bought the fintech decided to exit the CC business in 7/22. I closed it right after I heard the announcement. It's gone from all my reports. Go figure. 🤷🏽‍♂️

Re: Are low limit cards a blemish on one's report?

SouthJamaica — Sat, 20 Jan 2024 22:06:22 GMT

BTW have you tried asking for a CLI, or upgrading to a Quicksilver?

Re: Are low limit cards a blemish on one's report?

TiggerDat — Sat, 20 Jan 2024 22:32:02 GMT

That's a good point. Are you still paying a fee on that card? Have you hit the CLI button?

CapOne is known for only giving CLIs if you use the card, which is still better than they used to be.... It used to be impossible to get a CLI with them, but they were more than happy to issue you 10 cards each with a $39 fee. They got into trouble over that! I had a card with them that had a $39 fee and $500 credit limit, long ago, and they would never increase the limit. I used and paid it off one month three times, then twice the next month, and this was after using the card a lot and paying it off in full each month. I spent $7,500 on the card in one year and they said, nope no CLI for you. When I got better cards, I stopped using it and asked them to get rid of the fee. Nope. I actually had 2 cards with them and one with Household Bank, which they later bought. They would waive the fee, but never get rid of it. So I closed it. Then when the other card fee came due, I asked if they would get rid of it completely.... They agreed. I then applied for another card with them and it had no fee, so I transferred the limit to the first card and then transferred all of that limit to the Household bank card they bought. They are tricky, but if you use the card and pay it off right away a few times, they might raise the limit up, then keep pressing the CLI button every 6 months.

Re: Are low limit cards a blemish on one's report?

Shmike — Sat, 20 Jan 2024 22:37:45 GMT

I got my Capital One Platinum upgraded to a quicksilver, after 2 years with no questions. It's still stagnated at a $600 credit limit, but it's a Quicksilver nonetheless. Good luck!

Re: Are low limit cards a blemish on one's report?

Shooting-For-800 — Sun, 21 Jan 2024 03:39:39 GMT

DW's oldest card (Barclays) has $1k limit and HP and interview for CLI.

DW's newest card (Amex) has $35k limit.

Her score is in the mid 800s.

I don't think having low limit cards hurts you if you have some high limit cards as well.

FTR - I got many large CLIs with Cap One with heavy usage.

GL!

Re: Are low limit cards a blemish on one's report?

Shmike — Sun, 21 Jan 2024 03:52:14 GMT

That's awesome man! Some very impressive cards and some very impressive limits! I'm curious, were you bucketed from capital one? Because you have some pretty high limits I was just curious if you started out low, and with your heavy usage were you able to crawl out of said bucket? Thanks in advance!

Re: Are low limit cards a blemish on one's report?

markbeiser — Sun, 21 Jan 2024 04:01:35 GMT

I think it mostly only matters if you live in a state where insurance credit scores can affect your home and auto insurance rates AND the average limit across all of your cards is under $9000.
One of the scoring factors for insurance scores is the average credit limit of your credit cards, and the maximum benefit is at $9000 average.
I've no idea how big of a factor it is, or why it is even a factor.

Re: Are low limit cards a blemish on one's report?

Shooting-For-800 — Mon, 22 Jan 2024 03:04:36 GMT

If you are talking to me, I started my rebuild with a $3k Cap One, opened another at $3k, I got CLIs up to maybe $10k, opened two or three new Cap One staring at $10k, got like. $7k cli, $3k cli, etc, combined 4 cards into 2 to get $25k and $27k cards. Opened a new Venture with SL of $30k. Cap One reduced my Savor and QS down to $10k from lack of usage but grandfathered me in to Savor with $0 AF and Venture with $59 AF.

They also gave me a car loan for $0 down and 72 months @ 2.49%

Cap One gets a lot of crap from people that others would not give any credit to. They have always treated me like a king even when my Fico was like 625.

GL!

Re: Are low limit cards a blemish on one's report?

stonedog23 — Mon, 22 Jan 2024 06:56:47 GMT

I don't think having all low limit cards hurts your score, it may affect how a potential creditor views your profile. If all those low limit cards are at low utilization, I think that bodes well for your scores. You were at 10% with your lower cards, which was great. Then you got a new card for $2,000 pushing your utilization under 10% and that is why you saw a bump in score. If a $500 card had pushed you under 10%, you still might have seen a little bump.

Re: Are low limit cards a blemish on one's report?

Shmike — Mon, 22 Jan 2024 07:18:26 GMT

Thanks very much man, I really appreciate your insight! Maybe I can give you a little more information about my situation. So I initially got the Capital One Platinum $300 credit limit two years and 10 months ago. They gave me one credit limit increase of $200 approximately 9 months into having the card, with relatively High utilization. Then about 4 months ago they refused to give me a credit limit increase but they said I was eligible for an upgrade, so they upgraded me to the Quicksilver card. My credit scores were in the 780s, so they had no excuse and gave me a $100 credit limit. I'm still stuck there, with moderate to heavy use. I also have their Walmart card, I got it about a year and a half ago for the $300 limit, and it's still out of $300 limit! Admittedly, I didn't use the card very much, up until recently. Trying to use it as much as possible currently, and hopefully this will trigger a credit limit increase. About 3 months ago they bombarded me with emails about pre-qualification. So I did it and I was approved for the Savor one card, with $1,000 credit limit. I'm using the Walmart card on the Walmart site, and getting 5% cash back. I currently have the card over the limit. Someone mentioned that triggered a credit limit increase. I'm hoping that's the case. Last week I tried for a credit limit increase on all three cards, I was denied for all of them! The saber one card they told me it was not open long enough. The Walmart card said it was due to insufficient use. The Quicksilver card said there was a recent increase, and I have insufficient income. I'm currently laid off and collecting unemployment. They are my bank of record, so they get my direct deposit. I'm at a loss! I'm hoping with more information you can give me a little more insight, and/or advice. Thanks in advance.

Re: Are low limit cards a blemish on one's report?

stonedog23 — Mon, 22 Jan 2024 08:27:28 GMT

@Shmike , when you got those $300 cards what were your scores?

Re: Are low limit cards a blemish on one's report?

NoMoreE46 — Mon, 22 Jan 2024 19:07:17 GMT

If this C1 Plat was your only card or of one of three, then it could be a pause for future issuers in my opinion.

In reality, this Aint no big deal in lieu of your flock of cards > $10,000 and a TCL of at least $250,000.