@fury1995 wrote:Because no matter how high your largest credit limit is, this never goes away, lol
"Your largest credit limit on open bankcard or credit card accounts is too low"
I've never seen that one before. Credit Karma doesn't show that for me. Maybe only other sites that use Vantage 3.0 scores show it?
If that's an actual reason code, I wonder what their threshold is. Maybe it's just generically coded based on "lower utilization = higher scores, therefore a higher limit = higher scores".
My FICO scores are actually quite a bit higher than my CK (VS 3.0) scores, right now.
@CreditMarathoner wrote:
@fury1995 wrote:Because no matter how high your largest credit limit is, this never goes away, lol
"Your largest credit limit on open bankcard or credit card accounts is too low"
I've never seen that one before. Credit Karma doesn't show that for me. Maybe only other sites that use Vantage 3.0 scores show it?
If that's an actual reason code, I wonder what their threshold is. Maybe it's just generically coded based on "lower utilization = higher scores, therefore a higher limit = higher scores".
My FICO scores are actually quite a bit higher than my CK (VS 3.0) scores, right now.
It is an actual reason code. It's not an if. The url link with sanctioned reasons codes that @Thomas_Thumb provided is right above your post. It's NOT from Credit Karma.
Fact is...everyone is different.
Family sizes vary.
Incomes vary.
Cost of living varies.
Lifestyles vary.
I have friends that make half as much as me and others that make 5 times as much.
For us, it is all about utilization and emergencies.
I have more credit card credit than I hope I will ever use all at once, and I intend to add more. There are several reasons why, none of which are founded in ego or gamesmanship.
My income is wavey. My utilization, as both a practical matter and a scoring matter, goes up and down a lot. At its peaks, it affects scores enough to trigger interest rate increases and/or CL decreases at times. When my utilization drops to <10%, scores soar. The large limits, as others have pointed out, buffer the score roller coaster, keeping scores more stable and preventing alarms from going off with creditors.
As my scores have climbed and become more stable, I have been able to gain credit at lower and lower interest rates, and with other favorable tefms. Many of the older credit products I could get a few years ago, cannot adapt to my current qualification for better rates and terms. So part of getting more new credit is simply to get better credit. That, then, begs the question, "should I close older credit when I get better credit, or should I keep both?"
I close nuisance credit, such as a card with a $500 CL that can't be increased. But I leave open other credit that I may not ever use, except in an emergency. Emergencies happen, and age of accounts matter for score stability. In fact, during and following a fairly steep rebuild, age of accounts matters a lot. And the relationships, as they age, sometimes matter, too, when there is another, better credit product available. A card issuer that can't reduce my interest rate on an existing card, can issue a new, different card at a much lower rate.
When I first discovered this forum, I was surprised at the amount of credit some participants had. It triggered a realization that there was a path to credit as a bigger and more accessible tool than I had realized. It was inspirational from a utilitarian angle, not even slightly from a competitive angle, at least in my case.
Now I'm a rebuild success storyteller occasionally. I know how it feels and works to see someone who walked in similar financially ragged shoes, walking in much better credit shoes within a reasonable time. It does feel good to hopefully inspire a few others to accomplish greater credit goals than they may feel they can achieve otherwise.
I'm grateful for the credit choices I now have, and will have in the future, and use my options as a tool, using the best matching available credit, to the exact credit I need to use, to achieve my financial goals. The ability to pick and choose which credit to use or not use, is valuable and not vane.
This is very similar to my experience in the last recession.
I also get high limits to combat utilization and for emergencies.
But I also use the high limits for another purpose. When I started my company and wanted to get credit I had to let them pull my personal credit in addition to my new business credit. If I didn't have good credit and high limits I would not have started off with large credit lines for my business. That is really valuable to me.
I'm trying to get high credit limits just so I can have a very low utilization amount. That's really all that comes down to for me at least. I don't know about having $100,000 as a credit limit but $20,000 or $10,000 I'm okay with so if I spend $1,000 the utilization amount will be much less.
@acercode wrote:I often see people with $100k+ credit lines and wondering what's the reason for it. I mean they never use them all and if they do, their accounts get shutdown or severedly reduced. So what's the purpose of it, is it just in case of an emergency or is it just part of the credit/FICO game?
@the0walrus wrote:
I'm trying to get high credit limits just so I can have a very low utilization amount. That's really all that comes down to for me at least. I don't know about having $100,000 as a credit limit but $20,000 or $10,000 I'm okay with so if I spend $1,000 the utilization amount will be much less.
@acercode wrote:I often see people with $100k+ credit lines and wondering what's the reason for it. I mean they never use them all and if they do, their accounts get shutdown or severedly reduced. So what's the purpose of it, is it just in case of an emergency or is it just part of the credit/FICO game?
If you pay before the reporting date, your TCL is pretty much irrelevant.
