@IWOL wrote:
Thank you for the valuable input. The 3 secured cards can't be graduated. They started at $300 and I have continuously added deposits to them over the years. They are earning interest but it's a pretty pathetic rate.
Befor I joined these boards several months ago I was under the assumption that having higher limits affected your FICO score. I was planning to keep the limits high so that when I app for CSP and SPG they will see that I have been able to manage high limit cards for several years. That's really the only reason I have kept the limits where they are.
As far as the US bank, that was my plan, to PC to Flexperks after having the card for 6 months.
Higher limits doesn't directly influence score. Although it helps with utilization. Mostly higher limits just warrant future higher limit approvals.
The secured cards made for a sort of savings plan for you. Built your credit and built your savings, not all bad for sure.
@Dustink wrote:Higher limits doesn't directly influence score. Although it helps with utilization.
...and, just to clarify, utilization directly affects scoring.
Hey now, don't get all technical on us.
So, In terms of high limit cards to get higher initial limits when applying, will closed accounts be looked at by underwriters the same way as an open account?
Do closed accounts still show what the credit limit was when open? From what I have read here regarding the CSP, they generally want to see that you have managed a revolving account with 5K limit or higher?
I dont really need the money thats on deposit right now so I could wait until I apply in March, but If it makes no difference then I would go ahead and close the secured cards now so I can get a better interest rate on the 13K.
What do you think?
@IWOL wrote:So, In terms of high limit cards to get higher initial limits when applying, will closed accounts be looked at by underwriters the same way as an open account?
Do closed accounts still show what the credit limit was when open? From what I have read here regarding the CSP, they generally want to see that you have managed a revolving account with 5K limit or higher?
I dont really need the money thats on deposit right now so I could wait until I apply in March, but If it makes no difference then I would go ahead and close the secured cards now so I can get a better interest rate on the 13K.
What do you think?
Closed accounts do show what the credit limit was when open. I'm not certain how lenders would view closed out card limits when determing new credit line amounts if they even consider it at all. Chase requring a 5k limit on a prior card is a myth as a number of posters have gotten their first 5k limit from chase. What chase wants to see is prior revolver accounts with great payment history. Keep in mind if someone is only able to get a $500 credit line for their previous cards then that is a sign that there is some issue in their credit report and Chase is unlikely to all of a sudden given them a 5k limit. If other lenders are giving credit lines of 3-4k and the person has had those accounts for a year or more with great history Chase may very well issue the first 5k limit to that person.
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