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Does a higher credit card limit hurt my credit rating more?

When I get a new credit card, can I ask them to keep my limit lower than what they offer to me? Would that help me to have a better credit rating?

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8 Responses to “Does a higher credit card limit hurt my credit rating more?”

  1. MomMom8 said :

    No, The more you are allowed to owe the better your score. The less you owe, the better your score.

  2. Happy Cooker said :

    Your rating has to do with income versus debt, period.

  3. textraders said :

    It usually would not help your credit rating. It could help as far as getting more credit later is concerned. If you’ve got huge credit limits future lenders may not want to lend to you for fear that you’ll max out your accounts and then be unable to pay the new debt.

  4. sdkjfh said :

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  5. WelshLad said :

    As long as you clear it and pay on time each month, it doesn’t matter.

  6. Sawe said :
  7. otto3883 said :

    It definitely affects your score!

    Your credit score is determined by roughly the following formula:
    35% is payment history (Do you have a lot of late pays)
    15% is the length of time you’ve had credit (longer is better)
    10% is types of credit (do you have many varieties of loans, auto Mortgage, credit cards etc…)
    10% is new credit (applying for new credit and too many inquiries lower your score)

    Finally 30% of your credit score is determined by your outstanding balances, and this is the part that affects your score. If you have all of your cards maxed out, or actually use more than 50% of each card it hurts your score.

    They also look at how much you owe in total compared to how much you could owe (with lower being better)

    So if you only planned to owe $2500 on your cards, if your limit was $3000 your score would suffer. If your limit was $25,000 then owing $2500 wouldn’t damage your score at all.

    In general the more credit that you have available (both on individual cards and overall) the better your score will be.

  8. Thunder said :

    Lowering Limit reduces credit score


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