Maybe I'm not paying enough attetion to posts and maybe this question has already been answered but, I'm dinged on my scores for my limits not being high enough. What is the ideal credit limit or the minimum limit needed for it not to count against you? Cap 1 Plat =3.5K Cap 1 Gold=700 Cross Country=1.5K Orchard Bank=800 Discover=750 Thanks in advance.
It is not just your credit limit that matters, but what your current outstanding debt is compared with your total credit limit. How much of your available credit are you using? In addition, how old are your accounts, since a longer good history counts higher?
Understood on everything you mentioned. My utilization is around 25%. My cards have all been open a minimum of 4 yrs with the average for all cards being 5 yrs, 11 mnths. No late pays in 24 months. The reason I ask is that, when providing reasons as to why my score may be lower that it could be it states that my limits are low. It doesn't mention high utlilization, cards aren't old enough, etc. So this leads to my question, what it the ideal limit if they consider my limits too low.
You can't trust the automatically generated explanations as more than just guidance. They will give you some reason, even if you have perfect credit. How many hard inquiries do you have over the last year? That may be affecting your scores, particularly if there are 2 or more in the last 6 months. If you have negative information, such as lates from over 2 years ago, it is likely still having some effect. As they age, and as your current accounts get older with continuing positive payment history, your scores should continue to rise. At 25% utilization, raising your credit limits would also probably raise your scores, but you might want to do that selectively based on competetive offers, instead of requests for CL increases. Measure the suitablity of an offer based on its interest rate compared to your existing accounts, and not just the teaser rate. If you are carrying a balance, make each new account pay its way, in terms of improving your available account terms. You don't need more of the same, just to get a higher credit limit to raise scores.
when u have better credit your limits will be from 5k(minimum) to probably 20K or more if u combine cards. Actually i have like 4 or 5 cards with over 20K limits and 6 more with limits between 5 and 15K. You just have to me more carefull to manage those huge limits and dont get in debt. remember that it is not a free money and u have to paid for it later Personally i use some of my card to balance transfer only, other ones only for purchases usually with rewards.
