Hello everyone i have a question....is the amount of your CC limits a factor in your FICO score? i mean ive seen ppl on here with CC limits of 20k+!!... while i have only 2 CC with limits of only $300 each(but there both on time every month NO lates)....so does size really matter?
skyisdalimit wrote:
Hello everyone i have a question....is the amount of your CC limits a factor in your FICO score? i mean ive seen ppl on here with CC limits of 20k+!!... while i have only 2 CC with limits of only $300 each(but there both on time every month NO lates)....so does size really matter?
In and of itself, in FICO scoring - no, size doesn't really matter.
Other arenas wherein it might matter are topics for other boards.
What matters in scoring is the size(s) of your balance(s) relative to your CL's. Keeping your debt-to-available credit ratio down to 1-9% makes for happy FICO scores. This can be achieved with low limits either by controlling the spending on the card and/or by controlling the reported balances on the cards.
If you use a lot of your available credit each month and pay after you receive your statements, your scores aren't as high as they could be, because it'll look like you have a high d-to-c ratio, and you'll take a hit for that.
Finding out when your statements cut and timing your payments to get your balances down to that 1-9% before your account is reported should make a nice difference, if you're not already doing this.
Hope this helps.
ETA: Out-typed by concise sidewinder! And oops - forgot to recommend reading Credit Scoring 101 (first post or two in it, anyway). Reading this will give you a lot of good, basic info.
@Scamp wrote:
@Anonymous wrote:
Hello everyone i have a question....is the amount of your CC limits a factor in your FICO score? i mean ive seen ppl on here with CC limits of 20k+!!... while i have only 2 CC with limits of only $300 each(but there both on time every month NO lates)....so does size really matter?In and of itself, in FICO scoring - no, size doesn't really matter.
Other arenas wherein it might matter are topics for other boards.
What matters in scoring is the size(s) of your balance(s) relative to your CL's. Keeping your debt-to-available credit ratio down to 1-9% makes for happy FICO scores. This can be achieved with low limits either by controlling the spending on the card and/or by controlling the reported balances on the cards.
If you use a lot of your available credit each month and pay after you receive your statements, your scores aren't as high as they could be, because it'll look like you have a high d-to-c ratio, and you'll take a hit for that.
Finding out when your statements cut and timing your payments to get your balances down to that 1-9% before your account is reported should make a nice difference, if you're not already doing this.
Hope this helps.
ETA: Out-typed by concise sidewinder! And oops - forgot to recommend reading Credit Scoring 101 (first post or two in it, anyway). Reading this will give you a lot of good, basic info.
Not sure but the new scoring system might reward higher available slightly. Vantage does.
Great advice evryone thank you! i was very concerned that i would be penalized for having a low CL
..but now i know different!
..but now i know different!
