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#11
12-13-2006, 02:13 PM
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Re: Oops, too much credit.
[ QUOTE ]
No, I signed up on my own and used my SS#. I didn't use any of my parents info. It wouldn't suprise me, though, if there was some kind of mess up. I have the same name as my dad, but obviously a different social. [/ QUOTE ] I got a new CC about a month ago and recently tried to sign up for online access. It said my SS# was invalid or missing. So I call CS and he says that a "7" was inputted instead of a "1". Then I got to thinking..how was my credit line established using my credit report if my SS# didn't match? I have no idea. They probably went by name and address. It would be pretty interesting if you've been using your dad's credit all this time. LOL. One Question..When you try and get your limit raised, does it re-hit your credit report and it is bad if they deny an increase? Never tried it and i'm curious. 
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#12
12-13-2006, 07:23 PM
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Re: Oops, too much credit.
A part of your credit score is based on you ratio of used credit vs. available credit. The ideal ratio is 25%, but lower doesn't hurt if you have established credit. If they offered you that much, you probably are in the 700's. I like to keep the number of accounts I have open small and the limits large and my score is just over 800.
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#13
12-13-2006, 09:10 PM
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Re: Oops, too much credit.
800 is considered perfect by lenders(775 myself). I've never seen an inquiry on a credit report for a line increase, so I would say no. If they offered you that much they either are under the impression that you have a higher income than what you've reported or they are retarded.
Most of your credit score is determined by your payment history and your ratio of available credit to outstanding debt. I used to have a pie graph of all the components when I worked in banking but I don't remember it all now. Stan is right about high limits/few accounts. It is also important to have credit established over a long period of time and also not to have excessive credit inquires. As for ASU I have no idea how they could have given you a card without your proper SS# as that is how credit reports are pulled up.
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#14
12-13-2006, 09:21 PM
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Re: Oops, too much credit.
[ QUOTE ]
[ QUOTE ] I think the idea of having a bunch of unused credit all over the place is a warning sign to potential lenders. [/ QUOTE ] I think this is correct. A lender once advised me that the more unused credit I have, the less he can give me. The reason for this was that if I DID go ahead and spend the max that my CC allowed me to, I would be unable to service the debt I was taking from him. Essentially, if you are "good for" 100k of debt servicing, and have 25k of credit on various CC (just credit, no balance), you could be told that you will only get a 75k loan (in case you do spend that 25k on your CC). [/ QUOTE ] This is only true if you have a lot of different lines. Like, 10x $2,000 is bad, whereas 2x $10,000 is good. Lenders think, "Why does this person need so many credit lines?" However, many/most credit card companies automatically increase limits at intervals for good customers, so large limits on individual lines is good.
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#15
12-13-2006, 10:01 PM
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Re: Oops, too much credit.
[ QUOTE ]
I did this again the next month to $14,000. I now have a $28,000 line of credit from Amex. Is this bad? I should stop this, right? I only spend like $500-$600 a month. [/ QUOTE ] The big credit line is good; however AMEX does not report credit limits, only highest amount used so on your credit report it looks likea 2k limit (or whatever the highest balance you have ever had on it). What you need to do at some point to make theis big credit line work for you is buy something with it that you can get the money back for. ON fully refundable first clas plane ticket is used for this and sometimes diamonds are used for this. You buy something that comes close to maxing the card. let the billing cycle close and then return the item to have the creidt put back on your card. This causes them to report the usage so it makes your utilization very low once the 28k limit is reported.
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#16
12-13-2006, 10:19 PM
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Re: Oops, too much credit.
[ QUOTE ]
[ QUOTE ] I did this again the next month to $14,000. I now have a $28,000 line of credit from Amex. Is this bad? I should stop this, right? I only spend like $500-$600 a month. [/ QUOTE ] The big credit line is good; however AMEX does not report credit limits, only highest amount used so on your credit report it looks likea 2k limit (or whatever the highest balance you have ever had on it). What you need to do at some point to make theis big credit line work for you is buy something with it that you can get the money back for. ON fully refundable first clas plane ticket is used for this and sometimes diamonds are used for this. You buy something that comes close to maxing the card. let the billing cycle close and then return the item to have the creidt put back on your card. This causes them to report the usage so it makes your utilization very low once the 28k limit is reported. [/ QUOTE ] So you return it for the credit between the time that the billing cycle ends but before the bill is due?
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#17
12-13-2006, 10:25 PM
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Re: Oops, too much credit.
I just went through getting a mortgage and this is what I was told, take it or leave it:
The ideal situation is to have a $14-15k credit limit and carry a $4000 balance but USE the card and make payments every month. Higher limits mean you could really string yourself out and that would be bad for the prospective lender. Lower limit, and they start to ask, if they'll give you 10, why not 15? Yeah, you're paying interest each month on 4k... but if you've done yourself the favor of calling your credit card company to demand prime+1 or close your account, that should only be in the $20 a month range anyway. I'll pay $20 a month for a good credit score if I'm looking to make a big purchase in the near future. Both my my credit cards have permanent interest rates of under 7%. It amazes me that there are idiots out there with credit cards that carry at 24-30% APR...
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#18
12-13-2006, 10:25 PM
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Re: Oops, too much credit.
[ QUOTE ]
[ QUOTE ] [ QUOTE ] I did this again the next month to $14,000. I now have a $28,000 line of credit from Amex. Is this bad? I should stop this, right? I only spend like $500-$600 a month. [/ QUOTE ] The big credit line is good; however AMEX does not report credit limits, only highest amount used so on your credit report it looks likea 2k limit (or whatever the highest balance you have ever had on it). What you need to do at some point to make theis big credit line work for you is buy something with it that you can get the money back for. ON fully refundable first clas plane ticket is used for this and sometimes diamonds are used for this. You buy something that comes close to maxing the card. let the billing cycle close and then return the item to have the creidt put back on your card. This causes them to report the usage so it makes your utilization very low once the 28k limit is reported. [/ QUOTE ] So you return it for the credit between the time that the billing cycle ends but before the bill is due? [/ QUOTE ] Yes within 30 days (or whatever the grace period is for purchases without having to pay interest).
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