Hi All, Thanks to all the posts here over the last 18 months I've been able to get my credit back on track. However, I keep noticing that people seem to want more and more available credit. Talking about getting this or that card that has a $5000-$9000 limit. Hell, it scares me just to know that FCNB and Providian have given me about 2 grand each. If I were to use all of this I might end back up where I started. I try to never carry a balance on either of over $500. Anybody else out there careful about this? Or is everybody out to get the most credit they can, use it, then be screwed? Just curious. Mike
RE: Anybody else here careful I totally know what you mean. I had a First USA Platinum with a $10k limit. Then over the course of a year I ran it up to $7k!! I got it down to $6k then they lowered my limit leaving me with no available credit! Then they tried to charge me with over the limit fees. I called and complained and spoke with a rude rep. Long story short, I closed my account! Once my credit is rolling, I don't think I would want a card with that high of a limit. I think the most I can deal with is $5k MAX! It's too easy to charge and pay a little over the minimun. That's why I use my Am/Ex card for things that I'm totally serious about paying when the bill comes. I've tried that strategy w/ my Visa and it NEVER works!
RE: Anybody else here careful I totally agree with you guys .. These high limits are very easy to run up and extremly hard to pay back even if you make enough money , emergencies can arise and put you in trouble plus the interest is a killer . I think the key to getting credit is not for people who need it but for people to actually use it to biuld a good history in order to get better interest rates on serious debts like car payments and mortgages . .. Just curious though why did they lower your credit limit mp40 ?
Lowered Limit :-( I think it had something to do the bad credit (judgement, collections, etc.) that was added to my report (after I got the card). I'm assuming that First USA must of been periodically reviewing my credit or something and saw that it had took a nose dive! They must of got nervous and decided to lower the limit to $6k....and I owed almost $6k! That's the only thing I can think of. I have never been late with them EVER and have ALWAYS paid way above the minimum. I have read in several places that creditors have the discression to raise and lower your limit as they please.
RE: Lowered Limit :-( Thats really is unfair ! if you ask me . ! specially that you where on time with them . hope the rest of card companies don't follow the same stratitgy . ! Wich you the best with your other accounts ..
Good and Bad Credit This is a very interesting question. I think anyone with any sense tries not to max out a large subprime card. For me, large means my $1800 Providian card. I panicked when I hit $1200 and now refuse to use it. Also, having been ridiculed for accepting an Aspire Visa, let me point out that I have a balance of only $450 on my $1750 card and haven't used it recently. I sometimes wonder myself why anyone would want higher limits on some of these cards. When negotiating with subprime companies, we should look for advantages other than higher limits, such as lower interest rates or waived annual fees. There is, however, the problem typified by Capital One. A few cards have such high annual fees relative to their limits that the true cost of the credit is outrageous. My Capital One card, like many others, started with a $59 annual fee and a $200 limit. That works out to AT LEAST 29.5% per year, and more if the card isn't maxed out. Add the interest of 20% or more, and you're up around 50% per year in fees plus interest. Some people might think that a higher limit is the answer to this problem. I think the real problem is the high annual fee. To get more subprime credit can reduce your average cost of credit, but only by increasing the overall amount of interest you pay. We want to avoid wasting money on interest if we can. Prime credit is a different matter. A reasonable person could want more prime credit. I wish Chase would raise the limit on my 10.9% MasterCard from $1000 to $3000 so I could transfer my Providian balance and save about $157 per year in interest and a $59 annual fee. The only thing you have to remember about prime credit is that you still owe the principal. You may save on interest, but every dollar you spend is still a debt that has to be paid off eventually.
RE: Anybody else here careful No it's not scary having high credit lines.Well hell i got $40,000.00 worth of credit lines,and i am still growing!Why do i want large limits.Stop and think of this.If i need to finance a big ticket item,and this item dosn't offer interest free credit then i can call one of my creditor's,and request a special interest rate,and i do get it.Also consider this.If you have that kind of credit lines you can finance a good car loan "unsecured",and save $$$ on so called loan application fees,and etc.Now this may be taking it a too far but if you got that kind of power like having credit lines totaling aleast $100,000.00 or more you can even buy a house!Now the only thing about buying a house on "unsecured credit" is to call your creditor and get qualified for a low interest rate on purchases until paid,and also tell them you are going to make a very big transction,and to make sure it is going to get approved at the time of sale.I know this may sound to big but some people may have already did this.Also there is catch that is if you can afford to swing higher payments for the first 2 or 3 years of the loan.Then you can lower the payment accordingley just as long you pay it's min-due amount.People with good to excellent credit has the ability to do these kind of things.So having high lines of credit isn't scary after all.
