I'm currently looking at having my limit on my credit card increased, but before I do, I really need to know how having more available credit/increased credit limit will affect me mainly because I will be applying for a mortgage later this year.
2006-08-29 14:13:10 · 7 answers · asked by rms21560 2 in Business & Finance ➔ Credit
check these links, then decide what you want to do, they might even get you to change your mind!
see the FAQ on the first link down but really there's plenty of advice throughout if you have time to read:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
good luck!
if it helps please remember me cheers
2006-08-30 12:24:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Dear RMS:
If you're planning on maxing that credit card out, it will have a negative impact on your credit score. If you just want to have it for emergencies, then it should not affect your score, unless you need to reapply for the card.
30% of your credit score is based on a ratio of your outstanding balances to your available limits. It's best to keep your credit card balances to 30% of your credit limit. For example: if you have a $1,000 credit line, it's better to keep your used credit to $300 or less.
If you are considering applying for a mortgage, then I'd suggest looking at your credit situation before you consider changes to any cards.
I hope this helps. Please e-mail me at amkornele@yahoo.com.
Sincerely,
Anne : )
2006-08-30 08:30:15 · answer #2 · answered by amkornele 3 · 0⤊ 0⤋
Increasing the limit on your credit cards will lower your score by 5 - 10 points, depending on the reporting agency. That's because you will have more debt.
2006-08-29 21:56:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
your available credit limit is not reported to credit reporting agencies.. most credit card companies only report the balance, payment history and the longevity of the open account. be aware if you don't actually tell your mortgage company how much credit you have avail they will not know. If you have a capital one credit card you get 36 positive credit reference per year if your account is kept in good standing
2006-08-30 01:10:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
if you going to use the money from your cc limit increasment it will be not wise, because this will affect your ratio for your mortgage qualification purpose. if you want to increased cc limit and not use this money could be beneficial for your credit scoring. if you can bring your credit card balance below 40% of your credit card limit - your credit score will improve.
2006-08-29 21:27:55 · answer #5 · answered by bianca 4 · 0⤊ 0⤋
As long as you continue paying off your balance on time you shouldn't see any problems with your credit score. Larger credit limits tend to improve FICO scores if balances remain the same or decrease.
2006-08-29 21:26:17 · answer #6 · answered by darnellscottdebt 1 · 0⤊ 0⤋
Pay your bills on time, or else your cr score would go down. You can get your limit increased in your cc.
2006-08-30 06:49:42 · answer #7 · answered by iuw r 2 · 0⤊ 0⤋