topic Worth Raising Secured Limited - and not for utilization rate reason in Credit Cards

Worth Raising Secured Limited - and not for utilization rate reason

Anonymous — Wed, 09 Jan 2013 14:17:36 GMT

So I'm trying to research if raising my secured credit card limit will rase my score to a point where its worth doing. And by worth doing I mean a double digit-ish bump. My utilization rate is already sub 10% on the card on a regular basis..so I'm looking just for the reasoning with having more available credit.

Other than this secured credit card with a 300 limit, I'm an authorized user on a Home Depot card with a 10,000 limit, and under 20% utilization on that card.

So, what are the thoughts on raising my secured limit from 300 to 1000? Do you think there will be a somewhat meaningful bump (10 points or more) or do you think it will be minimal and better off the keep the cash on hand?

Re: Worth Raising Secured Limited - and not for utilization rate reason

staifokuzed — Wed, 09 Jan 2013 14:49:44 GMT

When applying for new credit the 1000 limit would be taken into consideration. Not sure of a score bump other than it would take utilization down. The AU account is figured into you utilization as will and it will be lower. That will bump your score.

Re: Worth Raising Secured Limited - and not for utilization rate reason

jsucool76 — Wed, 09 Jan 2013 15:06:46 GMT

I don't think raising the limit itself would increase your score. Also, which secured card do you have? Some lenders do a HP to increase a secured limit.

Like the previous poster said, higher limits beget higher limits.

Re: Worth Raising Secured Limited - and not for utilization rate reason

Anonymous — Wed, 09 Jan 2013 16:02:28 GMT

Gotcha. Thanks for the feedback guys. Sounds like I'm better to keep the money in the bank

Re: Worth Raising Secured Limited - and not for utilization rate reason

Revelate — Wed, 09 Jan 2013 16:29:22 GMT

While larger limits do indeed beget larger limits (within reason) if your file consists of only the one secured card, and one AU for revolving tradelines, I'd take the $700 or whatever and open another credit card. Also I'm not convinced that a 1K tradeline is substantially better than a $300 one in the current credit card market when it comes to future limits, something above 1K would likely be better in that regard.

Depending on your file you may be able to qualify for unsecured credit as well, but 1 tradeline is too thin and AU's are notorious for being counted differently than your own tradelines when it comes to future underwriting later.