Styleforum › Forums › General › General Chat › Credit Card Question
New Posts  All Forums:Forum Nav:

Credit Card Question - Page 3

post #31 of 41
1/7/11 at 5:57pm
One of the great things -- and there aren't many -- about getting old ... I don't need credit anymore.
Reply
Reply
post #32 of 41
1/7/11 at 7:06pm
Quote:
Originally Posted by otc View Post
Just let it roll...

my credit card company was doing a 2k limit increase every few months until I called and told them to stop doing increases (but don't let them lower it...that looks bad).

In the past it would have been bed if yours increased too much as something like the credit crisis would come along and they would start cutting limits to reduce liabilities...this would then show up on your report as having someone forcibly reduce your available credit which is bad.

I would say that these days...you don't have to worry too much about them overextending you credit

increases and decreases are not monitored...they are important because of their factor in utilization. why would you tell them to stop doing increases? that really doesn't make sense because you don't hold liability for fraud.
Reply
Reply
post #33 of 41
1/7/11 at 7:43pm
Quote:
Originally Posted by JohnGalt View Post
increases and decreases are not monitored...they are important because of their factor in utilization. why would you tell them to stop doing increases? that really doesn't make sense because you don't hold liability for fraud.

Most people seem to say that the ideal utilization is not "as close to zero as you can be without actually being zero" but rather something in the 1-20% range (not really at the high end of that though).
At the time, I was a student and spending pretty little on the card...with the card going from a $2000 (maybe 4) limit at opening to $12k in just a couple of years was kind of ridiculous and making my utilization really small.

That card is still at 12K and barely gets used (kept open for the credit age and when places don't take amex) but I didn't feel any need to tell them not to raise the limit on the card I opened after graduation.
Reply
Reply
post #34 of 41
1/7/11 at 9:55pm
Quote:
Originally Posted by BossTweed View Post
^ Should I be requesting a larger credit line on a current CC as often as possible then? Just to keep utilization down?

You can, but be careful there. Lots of people have gotten in trouble from increasing their credit limit, but not decreasing their balance.
A lot of companies will do a review for an automatic credit limit increase every six months or so but, as JG said, ask first if it will be a hard or a soft pull (your inquiries)
Reply
Reply
post #35 of 41
2/1/11 at 12:16am
I appreciate the help guys -- I understand that there aren't hard and fast rules.

Hypothetically, if an Amex was the only card I currently had open (and no prior history) and I spent about the same amount every month before paying it off, my utilization would be ~100%? Due to the fact that the limit reported to the credit agencies would be my highest amex balance?
Reply
Reply
post #36 of 41
2/1/11 at 4:26pm
No, the limit is the maximum the credit card company will extend to you, not the maximum you ever put on the card.

If definitely makes sense to have another card than Amex. There are so many places that only takes Amex, but equally a number of places that take anything except for Amex.
Reply
Reply
post #37 of 41
2/1/11 at 6:20pm
It depends on if you are talking about an Amex charge or credit card.

If it is a credit card, then the credit bureaus see both your statement balance and your credit limit - this is what is applied to your utilization. If it is a charge card, then they see your statement balance and will have a record of your highest statement balance, but it is not factored into utilization.
Reply
Reply
post #38 of 41
2/1/11 at 7:58pm
Just wanted to add that you can send a check at the beginning of the month to increase your credit limit to avoid maxing out and staying at that ~20% mark
Reply
Reply
post #39 of 41
2/3/11 at 3:35am
What is so good about a good credit score? Here in Australia, when you apply for a credit card with a bad credit history, and although you will most likely still get it, the policy is that if you aren't paying your bills/credit/loans off you're not supposed to be approved for a new card. I don't get the "keep all your cards if there are no fee's" and staying at a certain percentage of your limt.
Reply
Reply
post #40 of 41
2/3/11 at 5:40am
Quote:
Originally Posted by jobro View Post
What is so good about a good credit score?

Here in Australia, when you apply for a credit card with a bad credit history, and although you will most likely still get it, the policy is that if you aren't paying your bills/credit/loans off you're not supposed to be approved for a new card.

I don't get the "keep all your cards if there are no fee's" and staying at a certain percentage of your limt.
Higher credit scores = more limit, and lower interest rates. Also, more access to different kinds of credit.

Pay off your credit card every month. No sense paying money for a better credit rating (which you would be if you're paying interest for the sake of getting higher credit rating).

As for the number of cards .. depending on access, I say two. A personal card, with the highest limit you can get, and an "Internet" card, with a relatively low limit used for online purchases/accounts.
Reply
Reply
post #41 of 41
2/3/11 at 6:51am
Quote:
Originally Posted by imschatz View Post
Higher credit scores = more limit, and lower interest rates. Also, more access to different kinds of credit.

Ah, that explains it. I'm not to sure whether interest rates are variable with different credit ratings in Australia. Either way, paying your card off at the end of the month is always the best way to go.
Reply
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Chat
Styleforum › Forums › General › General Chat › Credit Card Question