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Kreditmort

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Does having credit cards with high limits improve your credit score?
I'm 20 years old and have 3 credit cards.

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Yes....and potentially no!

Yes having high credit limits on your cards shows lenders you have experience dealing with high amounts of credit. Typically the higher limit you have shows that you are a responsible with your purchases and can handle large purchases.

You want all of your cards to have over $2,000.

The negative is that you have to keep your balances below the %30 mark or it doesn't matter how high your credit limits are, the most important factor is keeping your debt low.  Maxing out credit cards will kill your credit....having high credit limits without using them will improve your score.

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Hey thanks! I have another question. Credit karma recommends I get a loan for a good credit mix. Should I takeout a personal loan to boost my score and if I do what's the best type of personal loan. Or should  I apply for another credit card?

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Keep credit used at 30% of what is given... So a $1,000 credit card should have a balance of $300...make payments 2 times a month equalling the minimum payment. So if payment is due 1st of month for $100... Pay $100 on the 1st of month then pay $50 on the 15th if the month. Next month pay $50 on the 1st and $50 on the 15th... Continue for every month... This kills your interest and builds your credit... Works the same way with a mortgage or a car payment... Pay the same amount each month just break it down every 15 days 

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