topic Re: is it better to have...(something I was just thinking about) in Credit Cards

is it better to have...(something I was just thinking about)

beautybrainsbooty — Tue, 09 Oct 2012 01:20:38 GMT

Is it better to have lots of cards with decent limits (less than 1000 limits) or better to have say three big boys with heavy limits? (5k and up) Does it even matter? What looks better to the scoring system or does anybody know?

Re: is it better to have...(something I was just thinking about)

madmann26 — Tue, 09 Oct 2012 01:25:31 GMT

I've been told less cards with higher limits by a couple of people here.

Re: is it better to have...(something I was just thinking about)

beautybrainsbooty — Tue, 09 Oct 2012 01:29:42 GMT

thanks MM!!! I thought so too, but I see lots of people with sigs and 14 cards. I personally would rather have three cards with 15-20k across the three than a whole bunch of cards to keep up with. Just my thoughts though everybody is different lol

Re: is it better to have...(something I was just thinking about)

navigatethis12 — Tue, 09 Oct 2012 01:30:01 GMT

Some scoring models will say limits are too low so that is bringing down the score. These same scoring models will say limits are too high so they are bringing down the score. I do not think it really matters to lenders looking at reports, unless you try for a card with a minimum credit limit requirment. If you have a young history they may be apprehensive about granting a larger credit limit than you already have.If you let balances report, higher limits will make it look like you are not using so much credit.

Re: is it better to have...(something I was just thinking about)

LS2982 — Tue, 09 Oct 2012 01:37:35 GMT

If you have lots of cards, as long as there is plenty of age to them and payment history that's just fine as well. It's when you have a lot of new toy limit cards that looks bad.

Re: is it better to have...(something I was just thinking about)

beautybrainsbooty — Tue, 09 Oct 2012 01:44:05 GMT

thanks yall. this makes perfect sense to me

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 01:46:55 GMT

@beautybrainsbooty wrote:
Is it better to have lots of cards with decent limits (less than 1000 limits) or better to have say three big boys with heavy limits? (5k and up) Does it even matter? What looks better to the scoring system or does anybody know?

A variety doesn't hurt as long as you keep up with them.

You can have a card with a $100 limit and still get a card with a $20k+ card. (I have seen this before)

It just depends on all the other factors in your credit report as well as your income to support the cards.

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 02:23:20 GMT

I prefer the few cards with good limits compared to the piles of cards with toy limits. As far as score, I don't think it is a direct factor. Even if for some reason having piles of toy limits helped your score more than a few good cards, wouldn't you rather have a few good cards compared to a pile of toy cards?

Re: is it better to have...(something I was just thinking about)

youngandcreditwrthy — Tue, 09 Oct 2012 02:28:29 GMT

Well.. Personally... I like having a lot of cards with high limits :-D

Hehehe... And that is what lenders like to see... A lot of positive accounts with a tooooonnnn of available credit...
Of course, I have no $20k limit card yet. LOL

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 03:10:31 GMT

@youngandcreditwrthy wrote:
Well.. Personally... I like having a lot of cards with high limits :-D

Hehehe... And that is what lenders like to see... A lot of positive accounts with a tooooonnnn of available credit...
Of course, I have no $20k limit card yet. LOL

Unless, your income does not support that. Then it is possible to get declined for CLI's and installment loans, for having too much available credit.

But,

If your income supports it. Then, that is the best way to go.

Re: is it better to have...(something I was just thinking about)

youngandcreditwrthy — Tue, 09 Oct 2012 15:59:39 GMT

LOL.... yes, but simply being responsible with credit may warrant add'l credit increases... lol

let's face it.... we don't always spend the credit that's avail.. in fact, that's the goal, right? to not max out every card you have haha.

however, typically, income becomes more important as limits get larger I've noticed. LOL :-)

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 16:03:52 GMT

@youngandcreditwrthy wrote:
LOL.... yes, but simply being responsible with credit may warrant add'l credit increases... lol
let's face it.... we don't always spend the credit that's avail.. in fact, that's the goal, right? to not max out every card you have haha.

however, typically, income becomes more important as limits get larger I've noticed. LOL :-)

+1

Yeah, I am just saying income becomes a factor later. If income has not grown over time, eventually the limits will taper off as well.

Can't have 20 cards with $50k limits and an income only $36k. Although, that income may support $100k in total revoloving limits.

Re: is it better to have...(something I was just thinking about)

youngandcreditwrthy — Tue, 09 Oct 2012 16:07:59 GMT

Oh, I believe you LOL... pfftt... I WISH I had a $50k LIMIT on a card!!!!!

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 16:18:19 GMT

@youngandcreditwrthy wrote:
Oh, I believe you LOL... pfftt... I WISH I had a $50k LIMIT on a card!!!!!

I think that too, then realize what is the point? Am never allowed to spend it, because it would be terrible to have to pay back. Utilization isn't that big of a factor since we are paying in full each month.

My AAoA is around 6 months, and my total revolving limit is around $18k. I now have one card that is over a year old, so it seems like a pretty good start.

From your screen name I am assuming you are in a similar situation as I.

Re: is it better to have...(something I was just thinking about)

youngandcreditwrthy — Tue, 09 Oct 2012 16:33:32 GMT

LOL.. well pif doesn't necessarily mean you have no util.... often times, statement balances are reported so even if you pif, your "reported balance" is what affects your util.

I'm actually 23 with aaoa of about three years.. and I do have a loooottt of cards and decent limits (avg. about $5k).. oldest account is like five or six years.

What card did you start building with? Cap One is good to build, but will not likely grow with you or increase your limit(s).

:-)

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 16:39:39 GMT

Yeah, but with decent limits average spending won't harm utilization.

I started with a US Bank unsecured card with a $300 limit. After 6 months they increased the limit to $2500. Then after another 6 months they gave me a rewards card with a $3500 limit. Now they are being very strict with granting me more credit, so I am branching out to new banks.

Re: is it better to have...(something I was just thinking about)

youngandcreditwrthy — Tue, 09 Oct 2012 16:47:56 GMT

VERY NICE!

:-)

I have about $80k+ in avail cred... but it took me YEARS to get a limit that high LOL.. like... three or four years...

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 16:52:01 GMT

When US Bank cut me off, I combined the limits on the two cards to form a $5000 limit flexperks signature. Now chase freedom gave me a $5000 limit as well, so that went well.

Do you have a goal you are working towards?

Re: is it better to have...(something I was just thinking about)

Anonymous — Tue, 09 Oct 2012 16:55:26 GMT

Oh, and according to the credit card act. This month I offically became old enough to get a credit card woot! Somehow I managed with no coapplicants or income verification.

Re: is it better to have...(something I was just thinking about)

youngandcreditwrthy — Tue, 09 Oct 2012 17:03:51 GMT

Luckily, I was 21 when that law took effect.

Well, my goal atm is to pay off my Travelocity Amex (I owe $4,600 at 0%) LOL...That'd also get my util well under the 10% I want

and then to get a 3xcli to $10,500 at 61 days on my Amex Blue Cash Everyday that I literally opened last week LOL... I might want the Citi Diamond Preferred in like Feb or March after a few inqs fall off, but not sure.

then I will just continue building.. might try for a 2013 Nissan Altima lease when I grad in about a year ... unless I stick to my plan of moving to NYC LOL then I won't need a car. I really just need to stay in the garden and build my lines further...and my aaoa needs to increase also. lol

What about you?