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Does a mix of high and low limits hurt profile?

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Super Contributor

Re: Does a mix of high and low limits hurt profile?

ACL (average credit limit) is not a factor when it comes to FICO scoring.  I do believe there are some scoring models however that do consider it, perhaps some insurance scores? 

Message 11 of 16
Valued Member

Re: Does a mix of high and low limits hurt profile?

For the core FICO models, your discrete credit limits are not weighted, nor are variances among them (at least to my knowledge).  Of course utilization is.  I would think it likely that many of the proprietary risk/decision models in use by big lenders do consider this.  Especially against more premium cards that have minimum SL’s (Visa Infinite comes to mind).  When I was rebuilding, I was denied a CSR solely because I didn’t have a card in my profile with a comparable limit (despite having an aggregate >$10K with low utilization).  

Message 12 of 16
Community Leader
Mega Contributor

Re: Does a mix of high and low limits hurt profile?


@Medic981 wrote:

@FireMedic1 wrote:

Dont close cards. Unless its a loan shark card. Disco will go up in time. They'll see how your BoA card is growing and get jealous and CLI's by you or them will come in. Wouldnt worry about banks and FICO doesnt care about your CL's. It how you take care of your cards.


Do you count a low CL bucketed Cap1 card causing high credit utility with an annual fee as a "shark card"?


Umm, one big NO.

Bucketed Cap1 with annual fee is a snapshot of what CR looked like when a person applied. 

There is no monthly fee on it and there is a grace period, so that's hardly shark card. 

You've moved on to bigger and better things. No need to be salty over blasts from the past. 

 

EX 759 EQ 774 TU 753


Message 13 of 16
Senior Contributor

Re: Does a mix of high and low limits hurt profile?


@Remedios wrote:

@Medic981 wrote:

@FireMedic1 wrote:

Dont close cards. Unless its a loan shark card. Disco will go up in time. They'll see how your BoA card is growing and get jealous and CLI's by you or them will come in. Wouldnt worry about banks and FICO doesnt care about your CL's. It how you take care of your cards.


Do you count a low CL bucketed Cap1 card causing high credit utility with an annual fee as a "shark card"?


Umm, one big NO.

Bucketed Cap1 with annual fee is a snapshot of what CR looked like when a person applied. 

There is no monthly fee on it and there is a grace period, so that's hardly shark card. 

You've moved on to bigger and better things. No need to be salty over blasts from the past. 

 


Just trying to bait me. I wasnt born yesterday. Everyone knew what I meant by loan shark card.





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 14 of 16
Valued Contributor

Re: Does a mix of high and low limits hurt profile?


@charp150 wrote:

For the core FICO models, your discrete credit limits are not weighted, nor are variances among them (at least to my knowledge).  Of course utilization is.  I would think it likely that many of the proprietary risk/decision models in use by big lenders do consider this.  Especially against more premium cards that have minimum SL’s (Visa Infinite comes to mind).  When I was rebuilding, I was denied a CSR solely because I didn’t have a card in my profile with a comparable limit (despite having an aggregate >$10K with low utilization).  


No the Credit Card companies don't care if you have a few low limit card limits in the mix.  My Amex cards started at 1k each but Chase, Citi, and B of A didn't have any problem giving me big limits.  24k ,25k and 19k.  Now Amex is giving me 25k limits. 

More cards than I can mention in a signature.
Message 15 of 16
New Contributor

Re: Does a mix of high and low limits hurt profile?

"Predatory cards".......funny, that's how I look at both of my Cap1 QS's. I know they aren't considered a sub-prime lender, but they way they bucket you sure makes it seem that way.

To answer the original question, I've had a QS1 ($600 current cl) since Feb this year, had the Platinum just recently converted to a QS ($600 current cl, af waived, auto cli to $750 planned for Jan 2019) since June. First of this month I got an NFCU CR card for $15k, Disco It for $1500, NFCU CLOC for $5k, and an NFCU auto refi cutting my interest rate from 11.45 to 5.89 all within a week of eachother.

All of that said, I asked on here if it made sense to kill off my Cap1 cards and move on with better tier lenders. Best advice I got was to just hold on to them, put them on a low auto pay bill, and just pay to zero each month and see what happened moving forward. Couldn't hurt, I don't have any AF's with either. Fast fwd to today and my EX is up 47 points, EQ 34, TU 55. Just my DP's, as always YMMV, but if you've got no AF what can it hurt to keep them? Open accounts kept in good standing help your score from what I've been told here.

Starting Score: 1/2018 EQ- 534, TU- 541, EX- 512
Current Score: 11/2018 EQ- 639, TU- 654, EX- 604
Goal Score: 700+ across the board by 1/2020


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By no means a FICO expert, all I can share are the facts of my own experiences and hope they help
Message 16 of 16
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