Credit Limit Important?

Discussion in 'Credit Talk' started by elsocete, Oct 25, 2001.

  1. elsocete

    elsocete Active Member

    Hi folks. Yep, I'm a newbie.

    I have noticed through a few posts where people gloat about their high credit limits. With some seeking constant credit increases. Aside from having more purchasing power, is there something I'm missing? Does it make your credit report look better? Should I be asking for increases even if I don't need them?

    By the way, what is "R1", "I1" or "R9" ?


    Hey supershawn, I missed your zen of the day today! I look forward to those links everyday!
  2. roni

    roni Well-Known Member

    You must be looking at your Equifax report... R stands for revolving- used with credit cards... I is for Installment- used with loans like mortgage or automotive... 1 is a current/paid/paying as agreed status- the best there is... 9 is the worst status showing "charge off"

    As for the credit limit question... the reason everyone 'gloats" is because the main company that produces credit "scores" Fair Isaac has determined that you ability to repay future debts is linked to your credit ratio... A person with $1000 in debt with a $1000 credit limit is at 100% and they score that very low because it is maxed out... A person with $1000 in debt and a credit limit of $10,000 is at 10% which is strong according to FICO.

    Welcome... nice to have you here...
  3. numnuts20

    numnuts20 Well-Known Member

  4. numnuts20

    numnuts20 Well-Known Member

    whoa... Bkev we posted at the same time!
  5. roni

    roni Well-Known Member

  6. elsocete

    elsocete Active Member

    I see. So by getting higher credit limits, you are in fact scoring better by increasing the credit ratio. Of course so long as you don't keep charging. Is having to much credit ever bad?
  7. roni

    roni Well-Known Member

    Only when you can not afford it... Just ask Donald Trump...

    Having a credit line is different from exercising it.... Another thing that plays into all of this.... Doesn't seem to matter if you pay your balance in full every month, you still are given a bill oweing something... So, if you maxed out your credit card each month, but paid the balance, the FICO system thinks you're a risk.......... GO FIGURE!
  8. creditwork

    creditwork Well-Known Member

    The Donald is a good example of what can ve done with credit. He is my hero. I don't like the eyebrows and combover, but he certainly optimized his credit.
  9. supershawn

    supershawn Well-Known Member

    Hi Welcome aboard!

    Sorry about the Zen moment.....Miss Cleo sent me an email last looked like Spam at first but then I 'felt' she really needed me to call. "SHAMEn on you all", she barked, "The pointless bickering on creditnet must stop". . She told me of how the CRA's were run by an elite secret team headed up by the Queen of England and the Estate of the late Kernel Sanders. She explained how they are encouraging us to fight amongst ourselves, dividing us and leaving them to cast havoc onto us without resistance.

    "Together they have created an unstoppable force"...she quipped..."The delicate mixture of her blue blooded DNA and his blend of 16 secret spices has create a virtual cornucopia of emotions that when unleashed on the web know virtualy no bounds."

    She is incredibly dissapointed with the creditnet regulars. "They must be punished!' she thundered...."Let the Zen moments stop until the love return to creditnet."

    And just like that, only $37.50 and 12 minutes of my time later, I finally understood.

    I have a feeling they will return very soon, in the meantime take a look at this ad for Afgan Legos.

  10. lbrown59

    lbrown59 Well-Known Member

    Can't it also lessen your chances of getting a loan???
  11. numnuts20

    numnuts20 Well-Known Member


    "Why all the fuss about unused credit lines? First off, lenders view all open credit lines as potential debt. Too much unused credit may affect a person's ability to qualify for a home or car loan.

    "Unfortunately, too much available credit can hurt you if you apply for a mortgage or a car," Rhode said. "It's actually counted against you.""

    see here:

  12. lbrown59

    lbrown59 Well-Known Member

    To get a good score you gotta trash your credit worth.
    To have credit worth you hafta have trash your score.With out both you can't have either.So matter what you have you don't have nothin.If you win you loose & if you loose you still loose.Wow what a grate system!
  13. numnuts20

    numnuts20 Well-Known Member

    reminds me of Parrondo's paradox:


    a joke:

    And a link for GEORGE!!

  14. richard612

    richard612 Well-Known Member

    >>Can't it also lessen your chances of getting a

    >"Why all the fuss about unused credit lines? First
    >off, lenders view all open credit lines as potential
    >debt. Too much unused credit may affect a
    >person's ability to qualify for a home or car loan.

    >"Unfortunately, too much available credit can hurt
    >you if you apply for a mortgage or a car," Rhode
    >said. "It's actually counted against you.""


    There is no FICO reason code for "too much revolving credit available." Further, I am not aware of ANY mortgage underwriting guidelines that take the amount of available credit into account. Can anyone find any?

  15. numnuts20

    numnuts20 Well-Known Member

  16. richard612

    richard612 Well-Known Member

    >"the amount of credit you have and how you use it
    >are important."

    >see here(must download pdf. file):

    I didn't see where they point out that too much credit is derogatory. Which page was that on?
  17. lbrown59

    lbrown59 Well-Known Member

    The lenders have their own reasons.

    Who limited it to mortages? I said loans which includes everything!

    Don't need any when you apply for any type loan and get denied and it says declined due to to much available credit in the reason letter they send you.
  18. lbrown59

    lbrown59 Well-Known Member

    It's on the one they send you after they turn you down.
  19. SisterGirl

    SisterGirl Well-Known Member

    This FICO thing doesn't mean SQUAT to me & the reason is that I pay my bills is NOT because of a score(only because I owe it).

    If a creditor refuses to increase me because of "too much available credit",then to hell with them.

    I say this because I have built myself up to where I am & I simply REFUSE to allow some company tell me "you cannot have your dessert because you have not eaten your dinner".

    Last week I was approved for 2 $9,000 Citibank AA cards,$5000 Nordstrom card,& $3500 Marshall Fields's card....but declined an increase on my Lord & Taylor card that I've had since 1995 because of my NEW CREDIT elsewhere.

    Lord & Taylor will see less & LESS of me henceforth due to their negative ahndling of my account.

    May National Bank & Sears National Bank are the WORST people that I have ever come across in the history of credit customer service.

    I choose who I do business with & the VERY reason why I opt out of EVERYTHING;I leave them no room to experience the "acidity" of my tongue when they have crossed me just ONCE.

    Just being real....

    Sister Girl
  20. creditwork

    creditwork Well-Known Member

    Wow, SisterGirl. I thought I was the only one that thought this way. For years I have been on this board promoting that same idea. Deal from strength, exercise your credit. Once you do, you will obtain better deals, lower rates and higher limits. Then, you will be the king of your domain. Credit is better obtained when not needed. Once you need it, it is too late.

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