|
|
#1
12-13-2006, 12:55 PM
|
|||
|
|||
Oops, too much credit.
When I started going to college, I got two credit cards, because I heard it was a good way to build credit. The Amex I got (Blue for Students) started out with a $5000 limit. This seemed a strange starting limit for a college student with no reported income. My Discover limit is only $500. Anyway, I was paying my bill one month (which I always do faithfully), and while messing around on the Amex site, I requested an increase in line of credit which was imediatley granted to $9200. 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.
|
|
#2
12-13-2006, 12:58 PM
|
|||
|
|||
|
Re: Oops, too much credit.
finance & investing forum probably..
...no harm in elevating your credit limit, as long as you aren't tempted to get there by spending. It helps your various ratios that include overall amount of credit you have available. As long as you don't charge a car, you'll be fine.
|
|
#3
12-13-2006, 01:00 PM
|
|||
|
|||
|
Re: Oops, too much credit.
It's actually good for your credit - your utilization level of your credit, with low being good - increases your score.
|
|
#4
12-13-2006, 01:02 PM
|
|||
|
|||
|
Re: Oops, too much credit.
like others have said this is good, especially from AMEX. ("if amex trusts him, we will too).
if you run up a balance, you are screwed though. as an aside I think it's pretty effed up that they gave you this much credit. but whatever.
|
|
#5
12-13-2006, 01:06 PM
|
|||
|
|||
|
Re: Oops, too much credit.
I think you can get to the point where you've got "too much" credit but it only comes when you have say 10 cards each with $2000 credit limit.
I think the idea of having a bunch of unused credit all over the place is a warning sign to potential lenders.
|
|
#6
12-13-2006, 01:24 PM
|
|||
|
|||
|
Re: Oops, too much credit.
[ 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).
|
|
#7
12-13-2006, 01:30 PM
|
|||
|
|||
|
Re: Oops, too much credit.
28K means you're rolled for 1000NL, sounds like it's time to take a shot.
|
|
#10
12-13-2006, 02:02 PM
|
|||
|
|||
|
Re: Oops, too much credit.
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.
|
 |
|
|
Linear Mode
