Is my credit limit too high?

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Postby Pete838 » Thu Mar 17, 2011 9:12 am

Remember that each lender can look at your total credit scenario (not just the 'score') when determining your creditworthiness. For instance, a mortgage lender may look upon high revolving debt (cards) availability poorly, while a competing credit card issuer may look upon it favorably, hoping to garner your business. When you apply for any type of credit, the creditor often has their own scoring system that determines if you are a good credit risk to them, and if your account will be profitable.
Something you don't want the appearance of is a "credit seeker," or someone constantly opening new lines. Not only will it bring our average account age down, banks may look at you as a higher risk.
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Postby Mogul of Pineapples » Sun Mar 20, 2011 5:53 pm

Pete you summed it up pretty well there.

For getting a mortgage there are times where it might be possible to have too much credit but krystalmarie07's credit limits are still on the low side. When I applied for a mortgage, I was told it was good to have "a few" credit cards with limits of at least $10,000 each. That was before the real estate bubble burst and in this post-recovery era I don't know if the same rules would apply.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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