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Credit card limit
Old 10-04-2007, 10:50 PM   #1
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Credit card limit

I have a credit card limit I feel comfortable with. The problem is the credit card company keeps increasing my limit. I don't need or want these increases. By telling them to lower the limit back down to what it was does that hurt my credit or score for the future?
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Old 10-04-2007, 10:56 PM   #2
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It is better to have a higher limit because credit card scores take into account your utilization of your credit line. Low utilization is a sign that you are responsible while being maxed out means that you are more of a risk.
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Old 10-05-2007, 07:55 AM   #3
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I have a credit card limit I feel comfortable with. The problem is the credit card company keeps increasing my limit. I don't need or want these increases. By telling them to lower the limit back down to what it was does that hurt my credit or score for the future?
Could you just give yourself a limit, instead? I don't have a credit card, but if I did then personally I would limit myself to what I thought I could pay back that month, no matter what the theoretical limit was.
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Old 10-05-2007, 08:07 AM   #4
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If they are bumping it up without pulling down a hard credit inquiry, then I would personnally let it be. The increased limit is descreasing your overall credit ultilization rate, which is a component to your FICO score.
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Old 10-05-2007, 08:08 AM   #5
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I don't know any of the limits on my credit cards, as I have never tested them. We use the cards solely for convenience and pay in full every month.

But, to answer your question, a higher credit limit is better for your FICO score. You don't have to use all of it.
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Old 10-05-2007, 11:28 PM   #6
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Every six months I call all my credit cards companies and ask them to increase my limits by several thousand dollars.

The higher limits increase my credit score.
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Old 10-06-2007, 03:54 PM   #7
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Is Ahigher limit safe if stolen?
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Old 10-06-2007, 08:01 PM   #8
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Check your card agreement. I am pretty sure that almost all the cards now have a $0 to $50 liability limit for the card holder, so long as you promptly report any stolen cards or fraudulent charges.

Its sorta nice when a CC company calls you to ask if some suspicious charges are really yours. Its a real pain though when the CC company denies your charges just because they do not meet your "normal" spending habits. All they are really doing is protecting their liability, not yours.
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Old 10-07-2007, 04:31 AM   #9
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I don't know any of the limits on my credit cards, as I have never tested them. We use the cards solely for convenience and pay in full every month.

But, to answer your question, a higher credit limit is better for your FICO score. You don't have to use all of it.
On the one hand maybe it does up to a point, but I have a credit report that has statements like "too much open credit" or words to that effect 'cause I've got a couple of cards with large credit limits. I pay off cards each month entirely. I've never come close to bumping into those limits, so they can't be assuming I'd use that much credit.

So the implication seems to be that if you have cards with high limits, they will rate you lower. I've never questioned those stupid statements, so maybe they don't affect your credit, but if not, why are they in there?

Jim.
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Old 10-07-2007, 08:12 AM   #10
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Credit card companies would like you to borrow more.

The only benefit in having a higher limit is from time to time it can come in handy for certain types of purchases... High dollar purchases where you feel you need purchase protection... Especially with small businesses. If you do not receive the service or goods and follow the rules... you are not out the money.


But for us, that is a rare event... I feel the same way; why have a large limit?
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Old 10-07-2007, 11:59 AM   #11
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I do not ever recall getting a call from either my MC or DC (only two cards that I have/need) asking me if I wanted an increase.

A number of years ago I tried to buy a used car with my DC and at the time my limit was $10k and car was about $15k. I called them and asked about an increase to $15k and they immediately increased it. I payed if off the next bill with my MMF.

Since I pay off the balance monthly, as most of you folks do, I have not come close to $15k again.
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