credit utilization is a factor in credit scores, which are important for things like mortgages and auto loans. higher credit limit, ceteris paribus, is lower utilization
I have never had a credit limit higher than 1800. I’ve managed to get lots of mortgages at rates that are just fine. Stop believing you’re a slave to your credit score.
If you actually have $110000 in freely available disposable cash and you’re worrying about whether you have the ability to spend it all on a credit card versus arranging a funds transfer or a check, I question your decision-making process. :D
My advice is to ask yourself how important your credit limit is, and ask yourself why. And challenge the notion that a better credit score has any positive impact on your life. You have a whole chain of “truths” you take for granted: higher limit implies lower utilization. Lower utilization implies better credit score. Better credit score implies better mortgage rates. Better mortgage rates implies better something. What I’m trying to tell you is you can forget every single bit of that dependency chain without doing yourself any damage and you will actually feel better.
Sorry for the proselytizing. I know I’m doing it. But I think it’s a huge part of our consumerism addiction.
Oh I do hate the game. I refuse to worry about credit scores and I haven’t checked mine in over 20 years. I’ve got a ridiculously low credit limit and that suits me just fine. Live like you don’t need credit.
Why would you want such a high credit limit? Are you dying to spend money you don’t have?
credit utilization is a factor in credit scores, which are important for things like mortgages and auto loans. higher credit limit, ceteris paribus, is lower utilization
I have never had a credit limit higher than 1800. I’ve managed to get lots of mortgages at rates that are just fine. Stop believing you’re a slave to your credit score.
1 reply →
Oh my God what a financial hellhole US is
Why would you assume they don't have $11xxxx?
If you actually have $110000 in freely available disposable cash and you’re worrying about whether you have the ability to spend it all on a credit card versus arranging a funds transfer or a check, I question your decision-making process. :D
I didn’t "want" it. Chase just gave my auto increases over the years of having this card. Spending habits have yet to change.
Also in US, credit utilization is a factor in credit scoring. Higher total credit means a lower utilization.
My advice is to ask yourself how important your credit limit is, and ask yourself why. And challenge the notion that a better credit score has any positive impact on your life. You have a whole chain of “truths” you take for granted: higher limit implies lower utilization. Lower utilization implies better credit score. Better credit score implies better mortgage rates. Better mortgage rates implies better something. What I’m trying to tell you is you can forget every single bit of that dependency chain without doing yourself any damage and you will actually feel better.
Sorry for the proselytizing. I know I’m doing it. But I think it’s a huge part of our consumerism addiction.
Hate the game, not the player. High credit limits = lower utilization ratio = better credit score.
Oh I do hate the game. I refuse to worry about credit scores and I haven’t checked mine in over 20 years. I’ve got a ridiculously low credit limit and that suits me just fine. Live like you don’t need credit.
So you can tell other people about it.
Shame your credibility score is in the negative.