how dose credit limits etc effect your credit score.?

Question

Ok i went and bought a TV at best Buy last week and signed up for there financing. intrest free..
the purchase was 1876, however my credit limit is 2000.
My friend told me what i just did there was commit suicide with my credit, and it will effict credit limits, APR on other cards.
Here are all of my credit cards

Capital i balance 1300, limit 7500 8%
Chase balance 3200 limit 5800 4.5$
citi/funiture intrest free balance 1700 limit 6000
would any of these be affected

Answer 1

Depends on how long you've had the high limits.
Credit limits effect your credit score negatively, if you "pay slowly". This means that you are paying, but at minimum amount. A lot of available credit means you are risky borrower, because there's a lot of potential for late payments and "default" (no payment).

The best is to have a few credit cards, such as Visa, Mastercard, Amex. Credit accounts with high interests rates also report negatively on your credit, such as, Furniture stores and Department Stores.
The only good time to own and borrow on one of the department store cards is during zero interest. The key is to pay off your debt on these zero interest cards before they interest rises. Then cancel them right after.
Use credit cards as a way to BUILD credit and keep your high score, resulting in excellent credit worthiness; but don't live off cards. They should be for an emergency (this includes travel/vacations), hehehe.
Your cards aren't that bad, but; apply for a major card with a ZERO interest rate, if denied, don't apply for another, wait six months! If you get the card, do a "balance transfer" and put the debt from your 8%APR Capital card on the new card. Then concentrate on paying it off, and keep the card. The Chase card sound fine and I'd leave it. The Citi/furniture account I would also transfer on your new "zero" interest rate card. Pay that sucker off and close it! They are considered very risky on your credit.

Check your score once a year at Annualcreditreport.com. Keep that score high, and mortgage companies will throw bags of money at you (not literally, but kinda)! Sounds crazy, but the reality is you should use your credit to invest in the future at a low interest rate.

Answer 2

If you got a limit of $2000 don't go over that amount because that's where you'll be stuck with the high interest rate and APRs. Only purchase extended warranties for the item and after that start paying more than the minimum balance to cut the payments down and to lower your interest rate because you'll be stuck paying the next 5 years on a minimum balance each month. Don't sign up for credit like that ever again pay in cash and be done with it.

Answer 3

This will NOT affect your APR on any other credit card - they are unrelated financial transactions.

It may affect your credit, because you now have additional debt, and your purchase was close to the credit limit, which means that the % available is < 10% of your total available credit (and this is bad).

I would work on making sure that you have the money to pay off those credit cards when the "interest free" part wears off, because they'll backdate the credit if you don't pay off 100% of the balance before the due date.