Unused credit - does it affect rating

tinkerbell28

Not really IME. If a serious lender such as a mortgage provider said, "We don't like the fact you have 25k available credit, would you consider removing some of that". I would say yes, go for it.

They don't just do a quick check, things are negotiable.

Having low credit limits, doen't look good, it looks like lenders don't trust you. Plus if you use them, you have a high revolving credit ratio.

You-kip

tinkerbell28 wrote: »

Not really IME. If a serious lender such as a mortgage provider said, "We don't like the fact you have 25k available credit, would you consider removing some of that". I would say yes, go for it.

They don't just do a quick check, things are negotiable.

Having low credit limits, doen't look good, it looks like lenders don't trust you. Plus if you use them, you have a high revolving credit ratio.

Do you mind pointing out to me where the OP was asking for a Mortgage?

tinkerbell28

You-kip wrote: »

Do you mind pointing out to me where the OP was asking for a Mortgage?

He wasn't I was talking in general about the blanket advice to reduce limits.

People were talking about mortgages etc. The thread had moved on to general points.

Thrugelmir

tinkerbell28 wrote: »

Having low credit limits, doen't look good, it looks like lenders don't trust you. Plus if you use them, you have a high revolving credit ratio.

That's not the way that a lender would view such matters. Cheaper credit option is a personal loan if a sizable sum is required. Obviously the amount owed decreases over time which demonstrates that the borrower is managing their money properly.

tinkerbell28

Thrugelmir wrote: »

That's not the way that a lender would view such matters. Cheaper credit option is a personal loan if a sizable sum is required. Obviously the amount owed decreases over time which demonstrates that the borrower is managing their money properly.

I don't agree. IME when one starts jacking up your limits to stupid proportions, others follow.

Which CRA is it that tell you low limits look higher risk? I wouldn't take that as gospel.

However like I say the more one cc jacks up a limit the higher my other limits go. I could have a 25k loan no questions asked on top of cards. It is outrageous. I would be able to buy several cars.