@Anonymous wrote:Greetings all,
This is what I don't understand. I see how people put their CC images in their profile and how much avaliable credit they have. Is this hurting the forums for what they really are intended to do? My impression is that these forums are to help people with their credit scores, credit reports, etc. But what I am constantly seeing is people pushing to get their CC's to their highest limits. Why would someone want to have; let's say an AMEX card with a 100k limit? Are they really going to spend that much money on credit? Has these forums become a "status quo" guide? Is this a pride thing? I understand how credit utilization works and how the debit to credit ratio helps improve one's score; but have we become obsessed with competing with everyone else on who has the highest credit limits on their personal CC's. Can someone please shine some light on this for me? Thank you in advance and as always enjoy what remains of your day.
I learned, about a year and a half ago, that your credit scores are lowered by having few credit accounts, and enhanced by having many, and that they are enhanced by having a lot of credit available. Yes I don't "need" the credit, but (a) I do "need" good credit scores, and (b) who knows, maybe someday I will need credit, and it would be nice to know it's there.
I also learned at the same time that having a bunch of recent credit inquiries and new accounts lowers your score.
I.e. I learned that it was necessary that I should build up my credit portfolio but that I would not gain much, if anything, by doing so, in the short run, because the 'newness' of my accounts would offset the 'largeness' of my portfolio.
Basically I've completed phase 1, getting a bunch of cards and increasing my available credit. I found it to be fun, and decided to add the pictures and limits to my signature, sort of keeping score.
Now I'm entering phase 2, which is no fun at all.... letting the accounts age. It's like watching paint dry, only less enjoyable. The only thing fun in it is applying for soft pull CLI's, and getting the rare approval, and then making the change to my sig.
So don't knock my having fun; fun counts for something.
The sigs also accomplish something other than fun, which is when one asks a question in the forum, or expresses an opinion, others can see where you already stand in the credit universe, so they know where you're coming from.
I am not 'competing' with others, but I am constantly learning from others on this forum, so I find it very interesting to see what they've accomplished, and how. It has helped me to set my standards higher, and to learn to be more persistent than I would otherwise have been.
@takeshi74 wrote:
@Anonymous wrote:Why would someone want to have; let's say an AMEX card with a 100k limit?
All sorts of reasons but it's up ot the individual to determine that. You cannot ever assume that "I don't see the reason" means "there is no reason" regardless of topic.
Given how revolving utilization impacts scoring and risk assessment, revolving utilization is one common reason for those seeking higher limits. That said, one can mange reported utilization by paying down balances prior to report date as well.
@Anonymous wrote:Are they really going to spend that much money on credit?
Limits and spend are two entirely different things. Do not conflate the two. Again, scoring models and risk assesment favor lower revolving utilization. I'd never spend the $30K that is the limit on my PPCR that I use for gas. However, with my spend it always reports with no more than 1% utilization. One can get into trouble with high revolving utilization well before maxing cards. For years I was stuck because my revolving utilization exceeded 60%.
@Anonymous wrote:Has these forums become a "status quo" guide? Is this a pride thing?
There are those who seek higher limits for status, bragging rights, etc. Everyone is not exactly the same. As always, you have to consider each source. For some it is just a matter of bragging rights. However, that doesn't mean that it is for everyone.
@Anonymous wrote:I understand how credit utilization works and how the debit to credit ratio helps improve one's score; but have we become obsessed with competing with everyone else on who has the highest credit limits on their personal CC's. Can someone please shine some light on this for me?
Again, people vary. Some are bragging. Some like to indicate their progress. Some include the information because others keep asking for it and they don't want to have to type it out every time. Do whatever it is that works for you. Stop worrying over why people have signatures. Or don't. I don't have one. I don't see the need to disclose the cards that I have, limits, scores, etc with every post and if any of that info is relevant to a post I want to make I'll include that infromation.
@Anonymous wrote:Is this hurting the forums for what they really are intended to do?
Good question. How would you measure this? Have things declined since people started using signatures which was probably LONG ago? People were using them before I joined. I haven't noticed any sort of decline based on the threads that I hit on a near daily basis. What have you seen over time or are you just assuming that this must be a problem based on the intent you're assuming motivates other to use signatures? I'm not entirely sure that the 20 days since you signed up would really offer a meaningul timespan but maybe you have stats to support your argument.
Regardless of what anyone posts, IMO it's up to the reader to consider the source, validate, corrborate, etc just as the person would do with any information. Even if everyone was merely pusing others to increase credit limits for bragging rights it's still the individual's decision on how to act on that information. Simply follow the crowd or carefully consider the info and use it as it is relevant to the individual? I suggest the latter.
What can I say. Takeshi74 may have interesting opinions, but this post is deserving of editorial position. 
eh either way... i'm out
@Loquat wrote:I actually enjoy reading about the journey of others and sharing that of my own. I also enjoy seeing the scores of others and the cards they have...it keeps me inspired. To those who do post their cards, limits, and scores, I say carry on because I'm sure there are many others just like myself here who appreciate the knowledge, wisdom, guidance, and inspiration you bring to the forum. Happy holidays to all!
I agree. I have learned so much here.
@Anonymous wrote:I don't think you know what status quo means.
Good point 
@Anonymous wrote:I don't think you know what status quo means.
