Available limits / Loan amounts

[Gregory1776]

Would having more Revolving Limits be beneficial for loan amounts/ utilization? 

[JoeRockhead]

Having higher available limits may have a bit of positive influence on loan amount approvals, but it's mostly going to still come down to approvals via the usual suspects... Scores, Utilization, History, DTI, etc...

[Gregory1776]

I was thinking Overall credit limits vs if I take out a large car loan. Is it more beneficial to have more available revolving credit lines or does that not play a factor?

[Thomas_Thumb]

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@Gregory1776 wrote:

Would having more Revolving Limits be beneficial for loan amounts/ utilization? 

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Revolving CLs should not impact loan amounts. The primary drivers for loans are: income, debt obligations (DTI ratio) and Credit worthiness (primarily score + length of personal credit history regardless of score).

Higher revolving CLs obviously can help lower revolving utilization and that can boost score. However, they are not considered when calculating installment loan utilization.

[FlaDude]

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@Gregory1776 wrote:

Would having more Revolving Limits be beneficial for loan amounts/ utilization? 

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If you are carrying revolving balances and more CL would significantly lower the UTI percentage, then yes it might help. If you are not carrying balances, then additional CL would not help your credit scores, and if it comes at the cost of HPs, then will have a negative score effect in the short term.

[SouthJamaica]

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@Gregory1776 wrote:

I was thinking Overall credit limits vs if I take out a large car loan. Is it more beneficial to have more available revolving credit lines or does that not play a factor?

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No it doesn't help you to have more revolving credit accounts.