creditscorned Posted February 25, 2005 Report Share Posted February 25, 2005 Hi,I know I read it somewhere here but, I can't find it. I have applied for a credit card (secured) and I want to know what the amount of the line of credit has to do with anything? Fico score or lender evaluation. I read that there was no differance between one set range of dollar amount and it did not effect your score until you reached another range. Also, someone else had posted applying for a $5k line of credit would increase your score. (I would not be putting that much of a deposit into this account)I understand the account would have to be aged. I am just trying to reestablish my credit. I will be signing on to two accts aged over 12 years. But, I thought I may need more postive lines on my report. I will need to fund this new account with more money if it does make a differance, as it is a secured credit card. Any info on how much my line of credit should be relating to Fico score and how many positive lines of credit I should have? I will have three. I have read four or five may be best. ??? Thanks,Creditscorned Link to comment Share on other sites More sharing options...
divemedic Posted February 25, 2005 Report Share Posted February 25, 2005 It isn't the CL that makes as big a difference as the utilization percent. That is, a person who has a CL of 500 with 100 charged on it has a util% of 20% and is better off than a person with a 2000 limit and 1000 charged on it.between 0 and 25 or 30 is the best util % to have, as far as I can tell. Link to comment Share on other sites More sharing options...
creditscorned Posted February 25, 2005 Author Report Share Posted February 25, 2005 Hi,Thanks. How many positive lines of credit is best? Creditscorned. Link to comment Share on other sites More sharing options...
wert Posted February 25, 2005 Report Share Posted February 25, 2005 Typically you want 2-3 credit cards, a gas card, a department store card or two.The whole idea is to have a mix of credit.As you get better scores, then you will start getting more offers. Then you can be picky. It's kind of like a snowball rolling down a hill-once you start to get good credit, it builds on itself! Link to comment Share on other sites More sharing options...
Sultan Posted March 1, 2005 Report Share Posted March 1, 2005 It isn't the CL that makes as big a difference as the utilization percent. That is, a person who has a CL of 500 with 100 charged on it has a util% of 20% and is better off than a person with a 2000 limit and 1000 charged on it. not to start an argument but with all due respect that is absolutely incorrect!High credit limits usually starting around and above $3500 considerably raise your score..Though the amounts owed (balance to credit limit ratio) is a serious factor of as much as 30% of your score is true, its good to keep the balance below 33% of available credit I.M.O. or 20% or even 10% interestingly paying them off and zeroing the balance hurts the score as opposed to leaving a small balance say between $50 and $100 dollars. Link to comment Share on other sites More sharing options...
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