I 've noticed that my two credit cards just increased my limits to more than 10k. I've heard that having too much potential credit is bad for mortgage lenders. Would it help if I get my credit card limits down?
2007-03-26 08:39:24 · 6 answers · asked by chiquichin 2 in Business & Finance ➔ Credit
No. What will lower your credit score is accounts that are maxed out. So if you have a $5000 limit and a balance of $4800 it will lower your score. The reason is because you now have little credit to use on that account. However, having to many open accounts can affect your scores. Good luck on your mortgage hunting. Most lenders have stopped doing 100% loans unless they go thru fannie mae.
2007-03-26 08:47:34 · answer #1 · answered by james 1 · 0⤊ 0⤋
Probably not. First, of all credit card companies generally don't increase your credit limit without you calling them and requesting an increase. But, either way, it shows the confidence that the credit card lenders have in your ability to pay for the use of their cards and improving your credit score. This confidence will further assure mortgage lenders that you can make the agreed monthly payments with less risk.
2007-03-26 08:42:27 · answer #2 · answered by homertorpedo 3 · 1⤊ 0⤋
mortgage companys dont give a dang how high your credit limit is
they are concerned with two things :
your ability to pay on time
and how deeply in dept you are.
if they feel you are over your head
in debt for the amount of income
you are producing then
BOOM
you are in trouble
just pay your credit cards off by the due date each month
a credit card is not a revolving plan
its a charge and payoff within 30 days plan
2007-03-26 08:51:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
that will not help at all. they don't really look at the limit of your card but more so how much debt you have, if you have had any lates or things like that. if you have any credit cards that you don't use you may want to close the accounts so they are not just sitting open.
2007-03-26 08:44:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
NO infact it might help you. By showing that is what we think of you, you've shown us your trust worthyness so we're increaseing your credit limils. That shows extra good credit on your part and thats what you need on a plus for any loan.
2007-03-26 08:49:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
NO..If you drop your limits you balances will take up more of your available credit. This will actually make your score go down.
2007-03-26 08:43:44 · answer #6 · answered by tchem75 5 · 1⤊ 0⤋