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jdennismot

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Average Credit card limit
I have 2 credit cards. One with a limit of $3000 and another with the limit of $320. My credit report says my score is being hurt that my average credit limit of the two cards is less than $2000. Does it make sense to just close the $320 limit card?

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No! More credit is better!

You have two credit cards, right?  The average is figured by adding the credit limits on both cards and dividing by the number of cards, which makes your average here $1660.  That is a very low available credit.

I had 3 credit cards ($1500, 1000, 500) for a total available credit of $3000 which isn't a good credit limit to have.  And my utilization was approaching 85% which is NOT good.  The Credit
Simulator program on this site showed how my credit score would improve if I consolidated my cards, so I swallowed hard, then called my credit union to see about making this happen.  I'm on a fixed income due to disability so was holding my breath.  

The consolidation went through so I now have 4 credit cards (the original 3 are used sparingly), my credit limit is much higher and that increased available credit increased my credit score.

So, hang on to the credit cards you have, keep their utilization no higher than 20%, pay the accounts in full (Total due on statement) every month and you will see your credit score rise.  Make use of the financial tools on this site.  You can play the "What If" game without actually risking your own money so you can decide what to do.

Hope this helps.

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