- How It Works|
- FAQs|
- Help
- Log In to your account |
- Sign up now for free!
Credit Advice
Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!
Question
Share this question with others:
Does having a higher credit limit work better than keeping a lower limit in place?
Asked by
AppleRules
2 years ago
Flag this Question
Best Response
What’s been voted most helpful!
Like everything else, it depends on the limits and context. Generally speaking, you want to have access to high credit and low debt. When it comes to access to credit, higher is better than lower within reason. Having $25,000-$100,000 in available credit is probably reasonable. Having $500,000 in credit card is probably excessive and could make other lenders think you are a risk because you have access to too much credit. The answer for debt is simpler. Lower debt is better. You always want to have a lower balance.
Because there are over 200 attributes that go into computing your credit score, general answers are very difficult.
SpookyCookie 1 year ago
2 responses
- Prev
- 1
Reply To This Question
The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.
Let the community lend a hand!
3 Most Recent Questions in Credit Cards
What do I do if a credit card shows up in my history, but I dont own it?
0 Responses
Asked by melopet
under Credit Cards
Should I close unused credit accounts or close them?
0 Responses
Asked by 4greenmama
under Credit Cards
Credit Card Offers Just For You
These are the most popular credit card offers from Credit Karma members with credit similar to yours.
Orchard Bank Visa Cards
- Acceptance at millions of locations including website purchases and reservations
- Your account information is updated and at your fingertips 24/7 so you can manage it your way
- Email and text messages to remind you of your upcoming payment due date with online enrollment
Orchard Bank Classic MasterCards
- Acceptance at millions of locations worldwide, including website purchases and reservations
- Your account information is updated and at your fingertips 24/7 so you can manage it your way
- Email and text messages to remind you of your upcoming payment due date with online enrollment
Capital One® Secured Mastercard®
- Get the credit you need with no processing fees or application fees
- Automatic reporting to the 3 major credit bureaus
- Track credit with access to your credit score and other tools
Copyright© 2007-2012 Credit Karma™, Inc. Credit Karma is a registered trademark of Credit Karma, Inc. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Karma are the property of their respective trademark holders. This site may be compensated through third party advertisers.
Thank you for this answer. I have several cards with high limits and low utilization, and have often wondered what "excessive available credit" means. Your guideline of <=$100K puts my mind at ease, thanks!</p>
manetco 2 years ago
Like everything else, it depends on the limits and context. Generally speaking, you want to have access to high credit and low debt. When it comes to access to credit, higher is better than lower within reason. Having $25,000-$100,000 in available credit is probably reasonable. Having $500,000 in credit card is probably excessive and could make other lenders think you are a risk because you have access to too much credit. The answer for debt is simpler. Lower debt is better. You always want to have a lower balance.
Because there are over 200 attributes that go into computing your credit score, general answers are very difficult.
SpookyCookie 1 year ago