Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?
Question by shooter 1: Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?
I have zero debt. I also have several credit cards. I am wondering how it will affect my credit to request the highest limit for each card, or if I should cancel all but 2 and have those with high spending limits. Along the same lines, how does “available” credit affect one’s credit score negatively or positively? If I get a $ 50,000 limit on a card (with 0 balance) but say, go to buy a car, will I be denied because I have too much credit out there?
Best answer:
Answer by talr
It’s better for your credit to have several cards with modern limit, as the FICO formula used by the credit bureaus consider the number of credit lines in good credit (by their type, e.g. revolving credit, installment loans etc). A lower number of credit lines will result in a lower score (since you’ll have more limited history).
Obviously that assume all of them are in good standing – if they’re not, the picture changes dramatically.
As to the total credit, what they look at is which percenage of your total credit are you using, and for that it’s irrelevant how it’s distributed between the credit lines.
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High Rollers: Inside the Savings and Loan Debacle
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Market forces, not scoundrels, destroyed the savings and loan business. So says Martin Lowy in what is truly an inside look at the savings and loan crisis. Drawing upon his experience as a practicing attorney, bank officer, and savings and loan director, Lowy provides an expert account of the problems that have overwhelmed the nation’s savings institutions and their government regulators. High Rollers is the first book on the S&L crisis that provides an analytical groundwork for technical and nontechnical readers–so that both can comprehend what happened. Lowy’s clear, readable style allows him to quickly describe the origins of the problems in new market forces and new technologies, and how the problems grew out of control as a result of regulatory mistakes and congressional inaction. Even his discussions of real estate lending practices and accounting issues are, in the words of Professor Horvitz, “both clear to the novice and instructive to the professional.”
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I Need a Loan, But I Have Bad Credit – High Risk Credit Loans
Bad credit simply means a history of poor credit rating due to non-payment of loan. A person might end up with bad credit due to unforeseen circumstances and it is very difficult to avail further loan as the credit rating is lower with poor credit score. To tide over this type of situations, lenders provide bad credit loans to persons who have low credit rating and are hence unable to raise money from their lender anymore.
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Written by BigKnowledge