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Effect of total Credit Limit on Score

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Contributor

Effect of total Credit Limit on Score

I applied for quite a lot of credit cards in past week or so... I had 710 Experian Fico score and it went down to 690 as of now.

 

My reported total CL is showing up as 2 500, however, if I add up all my approved credit cards... My current total credit limit is above 35k.

 

Can I expect my score to improve once all these credit cards start reporting to agencies?

 

My old utilisation was around 20%.

BofA Platinum Plus [1k], Discover IT [5k], Ritz-Carlton [34k],
Amex EveryDay [1k], Amex BlueCash [10k],Amex Green [NPSL], Citi DoubleCash [5k], FIA [4k].
20 Year Old Student, oldest line 18 months (BofA, secured graduate) not an AU anywhere, Not Co-Signed.
Message 1 of 8
7 REPLIES 7
Valued Contributor

Re: Effect of total Credit Limit on Score

I had a 742 score before applying for about 7/8 new cc's.  Once the dust settles, it will affect your score for a while.  It will go down but start climbing pretty quickly.  Mine went down to 701.  I think with all the HP"s & new cards, it shocked my score!  It does take some time for all of the cards to report.  Some are much quicker than others.  Leased BMW & it took them over 3 months before they started reporting.  I did check the fico stimulator & ultimately my scores will go much higher than they were once the accounts age a bit.  It's just one of those things.  Probably the reason they tell you not to apply for credit unless you really need it.  Any as you know, once you start, you can't stop! Smiley Very Happy


FICOS: EQ-812 TU-811 EX-818 Goal - 840-850 Across The Board
Total Credit Lines - 506K Gardening....
"I am the master of my fate and the captain of my destiny" Nelson Mandela
Message 2 of 8
Valued Contributor

Re: Effect of total Credit Limit on Score

After a year you'll gain it all back, after two years you'll gain it all back and some more.

"I am become death, the destroyer of worlds"
Message 3 of 8
Moderator

Re: Effect of total Credit Limit on Score


@Kenro wrote:

I applied for quite a lot of credit cards in past week or so... I had 710 Experian Fico score and it went down to 690 as of now.

 

My reported total CL is showing up as 2 500, however, if I add up all my approved credit cards... My current total credit limit is above 35k.

 

Can I expect my score to improve once all these credit cards start reporting to agencies?

 

My old utilisation was around 20%.


I would not expect too much here as the drop in overall util might be outweighed by the impact of the new accounts. Over time you will see your score increase as the accounts age.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

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- Rhonda Byrne

Message 4 of 8
Frequent Contributor

Re: Effect of total Credit Limit on Score

Limit does indeed impact your score, but so does your total utilization, payment history and AAoA.

 

It can certainly go up after a new card is approved though. My TU FICO was 765 and went up to 770 after my $10k limit US Airways card was approved. This was also in addition to CLIs on two of my other cards as well.

Current Cards: AmEx Blue Cash Preferred | Barclaycard Arrival Plus | Discover It | Wells Fargo Cashback Visa Signature |
Message 5 of 8
Contributor

Re: Effect of total Credit Limit on Score

My oldest credit line is a mere 11 months old, so it seems like there isnt much to lose with the Average account open age.

 

12 hard credit enquiries though Smiley Sad only positive here is that new inquiries do not hurt my score anymore... 

 

I still feel lucky, 20-30 point drop for such big increase in CL available and CL in region of 10k for 2 cards...

 

While being a student and less than 1 year old credit file.

 

Just hope I dont get called up and my CL slashed...

 

Its just stupid, I got denied for low end and "Student" credit cards and got approved for CC at Visa Signature level... 

BofA Platinum Plus [1k], Discover IT [5k], Ritz-Carlton [34k],
Amex EveryDay [1k], Amex BlueCash [10k],Amex Green [NPSL], Citi DoubleCash [5k], FIA [4k].
20 Year Old Student, oldest line 18 months (BofA, secured graduate) not an AU anywhere, Not Co-Signed.
Message 6 of 8
Moderator Emeritus

Re: Effect of total Credit Limit on Score


@fitchaber10 wrote:

Limit does indeed impact your score, but so does your total utilization, payment history and AAoA.

 

It can certainly go up after a new card is approved though. My TU FICO was 765 and went up to 770 after my $10k limit US Airways card was approved. This was also in addition to CLIs on two of my other cards as well.


Credit limits, in and of themselves, are not used to calculate scores.

 

The percentage of those limits used and reported each month is the important number.

Message 7 of 8
Contributor

Re: Effect of total Credit Limit on Score

However, It seems like the lenders do pay attention to your CL.

 

Chase for example, does not like to give out its Sapphire VS unless there are other Credit Cards with <5000 limits on them.

BofA Platinum Plus [1k], Discover IT [5k], Ritz-Carlton [34k],
Amex EveryDay [1k], Amex BlueCash [10k],Amex Green [NPSL], Citi DoubleCash [5k], FIA [4k].
20 Year Old Student, oldest line 18 months (BofA, secured graduate) not an AU anywhere, Not Co-Signed.
Message 8 of 8