Is it a bad thing to click on 'Request Credit Increase' and have it actually work, every time?

[JRVette]

Originally posted by: FrankyJunior
Thei higher your credit limit, the lower your credit score goes because it gives you the potential to get yourself further in debt if you were to max them out. We just went through and lower all our limits to normal amounts a couple weeks ago. Do I really need a $15k limit on a credit card? No. But when someoen does a credit check for a loan or mortgage or whatever, they see that as potential debt you could use at any time which is bad.

Correct. The worst thing you can do is extend your credit, especially when you don't need it. You're credit rating goes down because you are that much more of a risk.

 

[walkur]

I've had my Visa card 3 years now, started at 1200 credit, for some reason they decided to increase my credit to 5000 without me even asking. I only use the card when i'm in the USA on vacation (once a year).
Oh well i'm not complaining.

 

[Viper GTS]

Originally posted by: FrankyJunior
Thei higher your credit limit, the lower your credit score goes because it gives you the potential to get yourself further in debt if you were to max them out. We just went through and lower all our limits to normal amounts a couple weeks ago. Do I really need a $15k limit on a credit card? No. But when someoen does a credit check for a loan or mortgage or whatever, they see that as potential debt you could use at any time which is bad.

It's not quite that simple, having high limits helps your score & low debt/credit ratio also helps. Yes having tons of available credit can be a bad thing, but to a point it's a good thing. I doubt I'll ever drop my cards below $10K, ideally I would like $20K (getting there on one).

I just passed the 4 year mark since my first card, I cat believe the number of offers & limit increases I've received in the last month. 25-50% increases on my cards without my request, actually decent CC offers (none of the $49 a year 19.9% BS), & my score is up quite a bit.

Viper GTS

 

[Shanni]

Originally posted by: JRVette

Originally posted by: FrankyJunior
Thei higher your credit limit, the lower your credit score goes because it gives you the potential to get yourself further in debt if you were to max them out. We just went through and lower all our limits to normal amounts a couple weeks ago. Do I really need a $15k limit on a credit card? No. But when someoen does a credit check for a loan or mortgage or whatever, they see that as potential debt you could use at any time which is bad.

Correct. The worst thing you can do is extend your credit, especially when you don't need it. You're credit rating goes down because you are that much more of a risk.

That is so true! I'm always amazed by how many people don't realize that banks see high credit limits as risk. MBNA constanty tried to raise my limits, they took my card from a 1K limit to a 15k limit, I had to call them and request it be lowered, and never rasied again without my consent.

 

[Ausm]

I have 2K on a 12K CC and they Raise mine 2K every couple of years no matter if I have a balance or not.

Ausm

 

[Mill]

Originally posted by: Shanni

Originally posted by: JRVette

Originally posted by: FrankyJunior
Thei higher your credit limit, the lower your credit score goes because it gives you the potential to get yourself further in debt if you were to max them out. We just went through and lower all our limits to normal amounts a couple weeks ago. Do I really need a $15k limit on a credit card? No. But when someoen does a credit check for a loan or mortgage or whatever, they see that as potential debt you could use at any time which is bad.

Correct. The worst thing you can do is extend your credit, especially when you don't need it. You're credit rating goes down because you are that much more of a risk.

That is so true! I'm always amazed by how many people don't realize that banks see high credit limits as risk. MBNA constanty tried to raise my limits, they took my card from a 1K limit to a 15k limit, I had to call them and request it be lowered, and never rasied again without my consent.

You'd be entirely wrong.

 

[Mill]

Originally posted by: JRVette

Originally posted by: FrankyJunior
Thei higher your credit limit, the lower your credit score goes because it gives you the potential to get yourself further in debt if you were to max them out. We just went through and lower all our limits to normal amounts a couple weeks ago. Do I really need a $15k limit on a credit card? No. But when someoen does a credit check for a loan or mortgage or whatever, they see that as potential debt you could use at any time which is bad.

Correct. The worst thing you can do is extend your credit, especially when you don't need it. You're credit rating goes down because you are that much more of a risk.

That's simply not true. FICO will not be effected by higher credit limits. It is very rare for underwriting to turn down a credit request based on too high available credit. There are people on fatwallet and creditboards with 200k to 500k in unsecured credit limits combined. It is not a negative impact, and if anything largely improves your debt/credit ratio. Keeping utilization about 10% or slightly less is supposedly the best for FICO. Regardless, my credit has IMPROVED the higher the limits I get. Banks are more willing to match my highest credit line, or to extend me credit because they seen prime Banks/Lendors such as MBNA/Amex/Citi have given me high credit lines.

 

[xospec1alk]

amex bumped me from 2-4 after 6 months and paying on time every single month

 

[sciencewhiz]

Where do you guys get your FICO scores?

 

[Mill]

Originally posted by: sciencewhiz
Where do you guys get your FICO scores?

MyFico

 

[CPA]

Originally posted by: jagec

Originally posted by: mchammer187
i only have 7.5K of available credit though and had the same card for 3 years

started out around 1K and i have never requested an increase

Pretty much the same thing here.

I bet I could get an increase if I asked. I don't want to...who carries that much CC debt? Current balance is $2000 (college ), but I'm going to pay that off before the end of the month.

 

[CPA]

Originally posted by: Shanni

Originally posted by: JRVette

Originally posted by: FrankyJunior
Thei higher your credit limit, the lower your credit score goes because it gives you the potential to get yourself further in debt if you were to max them out. We just went through and lower all our limits to normal amounts a couple weeks ago. Do I really need a $15k limit on a credit card? No. But when someoen does a credit check for a loan or mortgage or whatever, they see that as potential debt you could use at any time which is bad.

Correct. The worst thing you can do is extend your credit, especially when you don't need it. You're credit rating goes down because you are that much more of a risk.

That is so true! I'm always amazed by how many people don't realize that banks see high credit limits as risk. MBNA constanty tried to raise my limits, they took my card from a 1K limit to a 15k limit, I had to call them and request it be lowered, and never rasied again without my consent.

That is so false! It is not about high credit limit. It is more about utilization. Your credit score would be lower if you had 2K outstanding on 10K limit then it would be if you had 2K outstanding on 20K limit. That's why any good mortgage broker will tell you not to close any credit accounts prior to locking in a mortgage financing.