Quote:
Originally Posted by AlphaFrog
I'm not an expert at this, but I'be heard that it isn't always a good idea to increase your credit line like this. Yes, you want a low debt to credit ratio, and you don't USUALLY use all of the credit you have, but it makes banks nervous to lend to you, because while you USUALLY don't use all your credit, there's nothing STOPPING you from using it and all of a sudden owing $40,000 to someone on top of what your credit limit is with whatever bank you are trying to get a line of credit from.
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I'm certainly not an expert either.
It's taken me a looooooong time to get back on track credit-wise. I've found that the larger the cushion between my credit limit and my balances, the better. The bureaus actually track the highest balance I've ever had on my cards which must factor into the credit score.
Early last year, I put nearly $20,000 on a card because I was doing work on my house. However, it was paid off at the appropriate time, so the balance was zero. My highest balance on a card (which was a mistake on my part) was $300.
I am extremely particular about my finances and pretty stingy because I used to be in really bad place financially.
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