What does 'your largest credit card limit is low' mean?

nikkos123

Hey all!

So I've downloaded the new ClearScore app meaning I've seen my credit score for the first time ever!

As well as the score out of 700, it has broken down the list of positives and negatives on my file.

The only negative is listed as 'your largest credit card limit is low'

I have only one credit card with a £1,400 that I've regrettably never actually used.

What on earth does 'your largest credit card limit is low' mean and how can I fix this?

It may be irrelevant but I have a £2000 overdraft and a loan with £5,500 remaining, the loan I have never missed a payment for meaning I have a quite good overall score

matttye

It means exactly what it says: clearscore considers your largest credit card limit - £1,400 - to be low.

Why that is considered a negative is probably due to low limits being indicative of sub prime credit lines. Personally I doubt it will have any impact on your ability to borrow. In fact I'm sure having less credit rather than an unaffordable amount is a positive thing.

darkidoe

It doesn't mean a thing. Ignore it. Seems like you have got a decent credit limit.

It's like saying 'Your not very tall.' How tall is tall? How short is short? It's all subjective and some computer arbitrarily trying to put a label to your report. Take it with a pinch of salt.

HappyMJ

nikkos123 wrote: »

Hey all!

So I've downloaded the new ClearScore app meaning I've seen my credit score for the first time ever!

As well as the score out of 700, it has broken down the list of positives and negatives on my file.

The only negative is listed as 'your largest credit card limit is low'

I have only one credit card with a £1,400 that I've regrettably never actually used.

What on earth does 'your largest credit card limit is low' mean and how can I fix this?

It may be irrelevant but I have a £2000 overdraft and a loan with £5,500 remaining, the loan I have never missed a payment for meaning I have a quite good overall score

Try applying for an MBNA card they tend to give large limits to customers with very good credit. You're not going to use it very much so the limit doesn't matter but it'll get rid of that negative if it bothers you that much. Keep the old cad for a while though. If you close it you'll get another negative "Your oldest active credit agreement is not very old"

matttye

darkidoe wrote: »

It doesn't mean a thing. Ignore it. Seems like you have got a decent credit limit.

It's like saying 'Your not very tall.' How tall is tall? How short is short? It's all subjective and some computer arbitrarily trying to put a label to your report. Take it with a pinch of salt.

I think it's probably more accurate to say it may or may not mean something to some lenders!

nikkos123

Some great advice thanks! I was more specifically wondering if thus particular 'negative' was holding down my rating. Although my score is about 450 which the app claims is "soaring high" which I guess can only be a good thing

matttye

nikkos123 wrote: »

Some great advice thanks! I was more specifically wondering if thus particular 'negative' was holding down my rating. Although my score is about 450 which the app claims is "soaring high" which I guess can only be a good thing

Your 'score' is just ClearScore's numeric representation of their opinion of your creditworthiness. Take it with a pinch of salt because they don't actually lend money. You are the only one who can see the score provided by the Credit Reference Agencies. Lenders will simply be sent the data on your credit files and will make their own calculations.

darkidoe

matttye wrote: »

I think it's probably more accurate to say it may or may not mean something to some lenders!

Well the statement ''The only negative is listed as 'your largest credit card limit is low' '' is a verdict by Clearscore report which leaders wouldn't see.

If i am not wrong leaders would see:
CC Limit £1400
Overdraft £2000
Loan £5 500
with associated balances and payments each month.

The lenders can then decide if they like what they are looking or not.

I don't think the opinion of Clearscore report will amount very much into it. Best to forget about it and not fret about it in bed at night.

redux

Why do people suddenly get obsessed with improving a credit score, when they've managed for ages hardly borrowing any money anyway?

tomxlisa

I was speaking to experian the other day and they was saying the average age of my credit accounts is 6 months and needs to be 33 months or over, is this another your credit score is 700 and means nothing or does the average age actually matter?.

matttye

darkidoe wrote: »

Well the statement ''The only negative is listed as 'your largest credit card limit is low' '' is a verdict by Clearscore report which leaders wouldn't see.

If i am not wrong leaders would see:
CC Limit £1400
Overdraft £2000
Loan £5 500
with associated balances and payments each month.

The lenders can then decide if they like what they are looking or not.

I don't think the opinion of Clearscore report will amount very much into it. Best to forget about it and not fret about it in bed at night.

Yes agreed. What I'm saying is that some lenders might also see 'your largest credit limit is low' as a negative.

I'm sure the CRA's probably have some insight into what certain lenders are looking for.