@AyaMai wrote:I have credit limit 227k, my average utilization is 1%. To what point increasing your credit limit stops improving your credit score. Your thoughts on the subject.
increasing your credit limit doesn't improve your FICO score. credit limits are not a scoring factor.
it allows you to have higher reported balances to keep utilization % low (which is scorable), but the credit limits themselves aren't a scorable factor.
credit limits are scorable part of Vantage I believe to a smal extent, but you're well beyond what I would assume is required for most if not all of the points in that category
I know very early on higher credit limits helped my scores but after I reached maybe 15-20k in available credit there seems to be no difference at all. What I have noticed now is that if I use more than 1% but less than 10% of my available credit my scores drop 5-10 points until I'm back under that 1% mark again which is super annoying. What's really weird about this is that it doesn't seem to be set in stone, scores from one bureau might drop but the other two won't. Then that score recovers the next month and a differnet one of the three will drop instead. It's maddening and I don't understand why there doesn't seem to be any rhyme or reason for it. It's like my scores reach 780 and then the next month like magic it gets decresed again. Overall nothing is really changing and swings of less than $100 seem to have outsize impact which just doesn't seem right to me at all. I mean it doesn't matter too much as my scores are high enough to qualify for whatever I want regardless I just wish there was more transparency. Hiding behind "trade secrets" while screwing us over is the part I just can't abide. Consumers should be allowed to see the algorithms that affect so much of their lives IMHO. Otherwise how do we know they aren't rigging the system? And if they know we aren't allowed to see then what keeps them from doing so?
(In before "The Government DUH" responses LOL)
That's one part of our system I'm really not okay with but what choice do I have? I tried not participating and that wasn't working any better so here I am.
8/22/24
3/09/25
@AyaMai wrote:I have credit limit 227k, my average utilization is 1%. To what point increasing your credit limit stops improving your credit score. Your thoughts on the subject.
I think it always helps your score as long as it continues to lower your aggregate revolving utilization.
