Credit limit question

For just about anything you want to get off your chest about credit cards.
8 posts
steve25rx
Green Member
Green Member
 
Posts: 4
Joined: Mon Feb 16, 2015 5:55 pm
Location: Emerald Isle, NC

Credit limit question

Postby steve25rx » Thu Feb 19, 2015 12:02 am

I recently applied for a Chase Sapphire, mostly for the signup bonus, but also for some diversity and got a credit limit of $24,000. I also have a Citi Preferred with a limit of $12,000, a Capital One Quicksilver with a limit of $20,000, and a Discover with a limit of $7,400. Is having several cards with somewhat higher limits a good thing for my credit score? I originally thought so, but am thinking now that it may not be. The Quicksilver card was the one that gave me the higher limit originally. I'm not sure how i got a limit that high then, but thought it was great at the time. I also have a Premier Rewards Gold from Amex so I figured that may be why I got the higher limits. Thanks for any insight.


User avatar
obxfisherman
Centurion Member
Centurion Member
 
Posts: 106
Joined: Sat Feb 14, 2015 12:32 pm
Location: North Carolina

Postby obxfisherman » Thu Feb 19, 2015 10:36 am

Yes having a high limit is certainly a good thing for your credit score, especially if your utilization is low. Of course if your limits are racked up significantly then this would be a bad thing. Has something happened to your credit scores that would lead you to believe the high limit is bad? If anything the only thing that would have brought your score down was the Hard Pull associated with the recent application.

As a side note, Hello from North Carolina as well. :D
Cards Currently In My Wallet(See Avatar)
Chase Marriott Rewards Visa Signature (Daily Purchase): 13.4K
NFCU Visa SignatureCash Rewards: 5K
Sheetz Discount Card 3c Off PerGallon Of Gas Everyday

Total Credit Card Limits Roughly: 61.5K

User avatar
jumbo
Centurion Member
Centurion Member
 
Posts: 363
Joined: Wed Sep 14, 2011 3:17 am
Location: IA

Postby jumbo » Thu Feb 19, 2015 10:40 am

steve25rx wrote:, a Capital One Quicksilver with a limit of $20,000,.
:confused:
BofA Cash Rewards | CapitalOne QuickSilver | Discover More
Gold Delta AMEX | Citi DoubleCash | Citi Simplicity
Chase Freedom | Kohls Charge Card

thom02099
Centurion Member
Centurion Member
 
Posts: 467
Joined: Sat Apr 13, 2013 7:49 pm
Location: Colorado, USA

Postby thom02099 » Thu Feb 19, 2015 12:52 pm

steve25rx wrote:I recently applied for a Chase Sapphire, mostly for the signup bonus, but also for some diversity and got a credit limit of $24,000. I also have a Citi Preferred with a limit of $12,000, a Capital One Quicksilver with a limit of $20,000, and a Discover with a limit of $7,400. Is having several cards with somewhat higher limits a good thing for my credit score? I originally thought so,[color="red"] but am thinking now that it may not be. [/color] The Quicksilver card was the one that gave me the higher limit originally. I'm not sure how i got a limit that high then, but thought it was great at the time. I also have a Premier Rewards Gold from Amex so I figured that may be why I got the higher limits. Thanks for any insight.


Why would you think it's not a good thing? Higher limits on cards affect your utilization, should you need to carry a balance on a card(s). You've got over $63K on those cards listed. Optimal utilization is less that 10%, so you could carry a balance of <$6300 and be under that 10% threshold. If that same $6300 balance was on a total credit limit of $30K, your utilization would be 21%. Still not bad, but not where you optimally need to be for the best score results. Also, there are anecdotal reports that higher limits result in higher limits on new applications, all other factors being positive.
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016

steve25rx
Green Member
Green Member
 
Posts: 4
Joined: Mon Feb 16, 2015 5:55 pm
Location: Emerald Isle, NC

Postby steve25rx » Thu Feb 19, 2015 2:59 pm

Hi thanks guys. I was reading that if you go for a car or home loan they don't like if you have a high credit limit. My utilization is pretty low though so I should be fine I guess. Good to meet you obxfiserman. I am freezing in North Carolina right now.

User avatar
obxfisherman
Centurion Member
Centurion Member
 
Posts: 106
Joined: Sat Feb 14, 2015 12:32 pm
Location: North Carolina

Postby obxfisherman » Thu Feb 19, 2015 7:25 pm

steve25rx wrote:Hi thanks guys. I was reading that if you go for a car or home loan they don't like if you have a high credit limit. My utilization is pretty low though so I should be fine I guess. Good to meet you obxfiserman. I am freezing in North Carolina right now.



I still think you will be alright. I'd take the high limits anyway. Yes it is quite cold here in North Carolina now, at least this weekend is supposed to warm up slightly. After tonight is over with, it won't be as horrible going forward. Stay warm out there and welcome to the forums!
Cards Currently In My Wallet(See Avatar)
Chase Marriott Rewards Visa Signature (Daily Purchase): 13.4K
NFCU Visa SignatureCash Rewards: 5K
Sheetz Discount Card 3c Off PerGallon Of Gas Everyday

Total Credit Card Limits Roughly: 61.5K

jcarte29
Centurion Member
Centurion Member
 
Posts: 183
Joined: Fri Jan 30, 2015 1:29 pm
Location: Charlotte, NC

Postby jcarte29 » Fri Feb 20, 2015 4:04 am

steve25rx wrote:Hi thanks guys. I was reading that if you go for a car or home loan they don't like if you have a high credit limit. My utilization is pretty low though so I should be fine I guess. Good to meet you obxfiserman. I am freezing in North Carolina right now.


I second that notion on the freezing weather, lol. I thought I heard of more wintry weather comin early next week!!?

I'm very close to E.I. (I frequently do trips to "Lowes n' Lowes" on the mainland side lol, I enjoy that more than going to Jacksonville anyday). Glad to see fellow North Carolinians on the board, and congrats on those high limits, can you talk to Cap One for me!?? lol
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Fri Feb 20, 2015 9:07 am

steve25rx wrote:Is having several cards with somewhat higher limits a good thing for my credit score?

It's not so much the limits as it is utilization. High limits can help but not if you also have high balances.

steve25rx wrote:I originally thought so, but am thinking now that it may not be.

Why? Did your scores drop?

steve25rx wrote:I also have a Premier Rewards Gold from Amex so I figured that may be why I got the higher limits.

It's not from holding a specific card. Limits are always a matter of your credit and income versus those qualify for with a given creditor. IIRC AmEx's charge cards all have the same underwriting criteria aside from the Centurion.

steve25rx wrote:I was reading that if you go for a car or home loan they don't like if you have a high credit limit.

It's generally debt, not available credit, that is a concern but creditors aren't all identical so it really depends on the specific mortgage lender. If it's a problem for the creditor you're applying to you can close accounts as needed.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests
cron