Subject: RE: What is your credit card debt? KSH - 2008-11-24 12:40 PM
Help me out here... how does it hurt you if they raise your limit? Assuming that you are able to use will power to not charge to that limit...????
Just curious as I'm sure I don't know all the in's and out's of credit.
As I understand it, if you have higher limits on your cards it causes potential lenders to pause and possibly lower the amount you qualify for, because that's $X,000 additional debt you could rack up in no time at all after they give you the loan for the car, the house, etc. So if you have $30,000 in total credit limits across four cards, then you go and borrow $25,000 for a new car; even though you might only owe $3,000 right now on your cards there's always the possibility that you'll get up to that $30,000, and now your overall debt picture isn't $3,000 + $25,000, it's $30,000 + $25,000. Even though you have a control on your spending they still look at it like a loose cannon. I hope that made sense [and was accurate]. |