topic Re: Too Many Low-limit Cards ....How low is too low? How many is too many? - Update in Credit Cards

Too Many Low-limit Cards ....How low is too low? How many is too many?

jaysdad2k — Fri, 12 Dec 2008 16:26:45 GMT

Do CCC's really use that as an excuse to deny?

So, if I had Cap One at, say $500 and Cred One at $750, would it really look better on INQ that they were closed by consumer instead of simply SD'ed?

I got Orchard up to $1,000. Is that high enough?

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Anonymous — Fri, 12 Dec 2008 21:32:01 GMT

Good for you on the Orchard, I have yet to see a third zero added to my accounts! (Of course since they are both secured I would at this point have to add that zero myself)

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Anonymous — Sat, 13 Dec 2008 02:19:57 GMT

I think it is more important to eventually get one with a moderate to high limit than to worry about the number with a low limit. If your scores rise, use positive history on those accounts to get a card with a bank that is generous with limits, such as BoA. That way, in a year or so you will have a 5k + credit line and manual reviews won't key in on small limits.

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Anonymous — Sat, 13 Dec 2008 02:43:34 GMT

I know where you're coming from..... I have a bunch of credit cards...Limits range from $300 to $750....

Merrick Bank $750

Cap one $500

Bof A Visa $500

USAirways Visa$500

1st Premier Master Card $425

Orchard Bank MC $300

HSBC Discover $300 ---just got approved, found out CL

First Savings Master Card $300

Credit One Bank $300

1st Premier Visa $300

Tribute Master Card $300

Most cards are from 4-7 months old...... Cap 1 is 13 mos old, Orchard Master Card 10 months old.....

The monthly fees are killing me, but I'm hoping that given enough time they will give me a CLI.... I've paid always before the due date, and more than the minimum.... I'd guess my usages is about 65-70% of my CL.....

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Anonymous — Sat, 13 Dec 2008 04:35:29 GMT

I personally, think 1k is the min i would keep granted one of the smallest ones isnt your oldest card and you have a few big cards. When i closed my small accounts(3 of 7) i actually gained a few points

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

jmbfl — Sat, 13 Dec 2008 05:39:55 GMT

A low limit card is less that $5K. $5K is some kind of magic dividing line. I would not close and dump any CC's based solely on the basis of CL alone until you have been able to get one pushed to $5K+. The only other reason to consider closing cards before that would be fees - which are a good reason to dump a lower limit card. When you have a bunch of low limit cards there are just too many benefits related to UTIL to arbitrarily close 'em. Make sure you understand the consequences before closing any account. Closing accounts is not a FICO-wise activity.

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Pushto700 — Wed, 13 Oct 2010 21:34:58 GMT

@Anonymous wrote:
I know where you're coming from..... I have a bunch of credit cards...Limits range from $300 to $750....
   Merrick Bank $750
   Cap one $500
   Bof A Visa $500
   USAirways Visa$500
   1st Premier Master Card $425
   Orchard Bank MC $300
   HSBC Discover $300 ---just got approved, found out CL
   First Savings Master Card $300
Credit One Bank $300
1st Premier Visa $300
Tribute Master Card $300

Most cards are from 4-7 months old...... Cap 1 is 13 mos old, Orchard Master Card 10 months old.....

The monthly fees are killing me, but I'm hoping that given enough time they will give me a CLI.... I've paid always before the due date, and more than the minimum.... I'd guess my usages is about 65-70% of my CL.....

bump - would like to know of any results in this current credit climate of having quite a few low limit cards, or if anyone has experienced setbacks from creditors since the new CC law was adopted with (too) many cards. I was denied credit last May, (2009) the reason (from WFB when attaining furniture credit) was that I had "too many unused credit lines". Baiscally having too many credit lines reporting minimal or zero balances.

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

haulingthescoreup — Wed, 13 Oct 2010 22:46:50 GMT

@Pushto700 wrote:

bump - would like to know of any results in this current credit climate of having quite a few low limit cards, or if anyone has experienced setbacks from creditors since the new CC law was adopted with (too) many cards. I was denied credit last May, (2009) the reason (from WFB when attaining furniture credit) was that I had "too many unused credit lines". Baiscally having too many credit lines reporting minimal or zero balances.

Well, that's a different animal, though, isn't it? It's an interesting reason for a denial, but I see all sorts of chances for confusion on this thread, lol, by entangling two discussions.

So you're bumping to ask if anyone has been denied specifically for "having too many low-limit cards", correct? Or if they've also gotten any other negative feedback from a lender for this reason?

I know that it's a popular FAKO comment.

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Pushto700 — Wed, 13 Oct 2010 22:57:34 GMT

@haulingthescoreup wrote:

@Pushto700 wrote:

bump - would like to know of any results in this current credit climate of having quite a few low limit cards, or if anyone has experienced setbacks from creditors since the new CC law was adopted with (too) many cards. I was denied credit last May, (2009) the reason (from WFB when attaining furniture credit) was that I had "too many unused credit lines". Baiscally having too many credit lines reporting minimal or zero balances.
Well, that's a different animal, though, isn't it? It's an interesting reason for a denial, but I see all sorts of chances for confusion on this thread, lol, by entangling two discussions.

So you're bumping to ask if anyone has been denied specifically for "having too many low-limit cards", correct? Or if they've also gotten any other negative feedback from a lender for this reason?

I know that it's a popular FAKO comment.

LOL, ok...kinda of a mangled thought. I guess the denial was something that is afterward or would answer my question after coming to a conclusion about this thread. the gamut is wanting to know of how many is "too many", especially in regard to low limit cards (below 5K).

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

Anonymous — Thu, 14 Oct 2010 01:54:34 GMT

So, I'm popping back up to the original question.

@jaysdad2k wrote:
Do CCC's really use that as an excuse to deny? No.

So, if I had Cap One at, say $500 and Cred One at $750, would it really look better on INQ that they were closed by consumer instead of simply SD'ed? No.

I got Orchard up to $1,000. Is that high enough? CL's don't affect your FICO score. You will see FAKO advice, given with FAKO scores, regarding low credit limits. Ignore it - there's no such code, therefore no such score hit, for low CL's.

And, once again, I have to pipe in with DH's lovely 800+ FICO score with only one CC open - and it had a $500 CL.

Please please ignore FAKO advice. I would hate to see someone close low CL accounts in an effort to please FAKO website advice, when it has no positive impact on your FICO score. In this case, it could hurt your overall utilization and cause some FICO damage.
Glad you're checking in on this website - you'll get some solid info here, and you'll hear from lots of helpful informed folks.

Re: Too Many Low-limit Cards ....How low is too low? How many is too many? - Update

jaysdad2k — Thu, 14 Oct 2010 04:45:14 GMT

I was surprised to see this thread that was originated by me almost two years ago. I don't even remember why I wondered if too many low limit cards would cause a denial.

A lot has changed since then.

I have since gotten the Capital One up to $800 and the Orchard to $1,200. I did close the Credit One and didn't look back.

I did a mini-app spree in May of 2009 when my very last baddie came off EQ, and it jumped to 744 My lowest now is the Cap One and an Amazon Chase at $900 (started at $400.)

I now have two accounts at $10k, one at $7500, three at $5k, including a Nordstrom Visa Signature. Apparently, the low limit cards didn't create any problems for approvals.

Many thanks to everyone on the board for the awesome information and thanks for the memory, too!

Re: Too Many Low-limit Cards ....How low is too low? How many is too many? - Update

payingoffdebt001 — Wed, 08 Jun 2011 03:16:27 GMT

Thanks for coming back and reporting! I just came across this post due to me browsing and appreciated seeing the before & after. Thanks!

Re: Too Many Low-limit Cards ....How low is too low? How many is too many? - Update

TangMeister — Wed, 08 Jun 2011 06:49:03 GMT

@jaysdad2k wrote:
I was surprised to see this thread that was originated by me almost two years ago. I don't even remember why I wondered if too many low limit cards would cause a denial.

A lot has changed since then.

I have since gotten the Capital One up to $800 and the Orchard to $1,200. I did close the Credit One and didn't look back.

I did a mini-app spree in May of 2009 when my very last baddie came off EQ, and it jumped to 744 My lowest now is the Cap One and an Amazon Chase at $900 (started at $400.)

I now have two accounts at $10k, one at $7500, three at $5k, including a Nordstrom Visa Signature. Apparently, the low limit cards didn't create any problems for approvals.

Many thanks to everyone on the board for the awesome information and thanks for the memory, too!

Congrats and always nice to see someone revisit a thread, and update with a success story!

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

smc733 — Wed, 08 Jun 2011 12:56:11 GMT

@jmbfl wrote:
A low limit card is less that $5K. $5K is some kind of magic dividing line. I would not close and dump any CC's based solely on the basis of CL alone until you have been able to get one pushed to $5K+. The only other reason to consider closing cards before that would be fees - which are a good reason to dump a lower limit card. When you have a bunch of low limit cards there are just too many benefits related to UTIL to arbitrarily close 'em. Make sure you understand the consequences before closing any account. Closing accounts is not a FICO-wise activity.

Depends, I think a low limit is less than $1,500, depending on how you look at it. Between $1,500 and $5,000 could be seen as moderate, where $5,000+ are "high". (Above $25k may be considered "very high", if you will).

Re: Too Many Low-limit Cards ....How low is too low? How many is too many?

JonStur — Wed, 08 Jun 2011 16:43:21 GMT

A blast from the past with a happy ending...