Low Credit Card limit = bad for credit score?

AJG384521

adindas wrote: »

This is bs someone with very good credit history, a dozen credit cards with different credit limit, high income might have a very low credit limit on one particular credit ask because they particularly asking for a low limit.

If they have a dozen credit cards then there credit limit would be quite high, even if one has a low limit. It combines all the credit limits together.

adindas

AJG384521 wrote: »

If they have a dozen credit cards then there credit limit would be quite high, even if one has a low limit. It combines all the credit limits together.

That is the point. But few people who are working as underwriter are risk averse, lazy, have little experience. They just see the fact that you have one very small limit for a reason so REJECT. The one with more experience one will be scrutinizing further and therefore will be making a more sensible conclusion.

I am speaking from personal experience ....

Experian_company_representative

You don't lose points on most scorecards, whether they're the ones the CRAs provide to help guide you or the ones lenders use to make decisions. You just either gain some or no points depending on your data. So for 0-10% utilisation, for example, you might gain 50 pts, for 11-25% 25 pts. And then something similar for the size of your highest credit limit and, another common characteristic, the average age of all of your open agreements. So there's no cancelling out of points. Your mission is to pick up as many points as you can through the scorecard!


James J