Comments on: You Can’t Have Too Much Available Credit http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Stephanie PTY http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-142335 Stephanie PTY Thu, 03 Apr 2008 20:36:49 +0000 http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-142335 @MillionDollarJourney - I've heard that as well. When you go for a mortgage or any big loan, they're going to look at more than just your score, so it's entirely conceivable that they might feel uneasy if you have a ton of available credit that you could run out and max out at any point. @MillionDollarJourney -

I’ve heard that as well. When you go for a mortgage or any big loan, they’re going to look at more than just your score, so it’s entirely conceivable that they might feel uneasy if you have a ton of available credit that you could run out and max out at any point.

]]> By: Lisa http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-142218 Lisa Wed, 02 Apr 2008 21:52:15 +0000 http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-142218 Opening a credit card also lowers your score. The theory is the more cards you have, the more of a chance you have of being delinquent on a payment. So irritating! Lisa Opening a credit card also lowers your score. The theory is the more cards you have, the more of a chance you have of being delinquent on a payment.

So irritating!

Lisa

]]> By: Steve R http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141884 Steve R Mon, 31 Mar 2008 18:40:19 +0000 http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141884 That manager only confused me more. First he says you don't lose the history of the card when you close an account, but then later he says the history is erased ten years after closing the account. Then he says it diesn't matter if your credit cards are bank cards or department store cards, but then he says it does. One question I would have asked: how much does my credit score change immediately after I pay off my credit cards? Suppose I have 10k in available credit, and I charge about $2500 a month. The day I pay my credit card, my used balance goes from 25% to 0%. Could that significantly improve my score? If I am applying for a mortgage, should I start using cash-only for the few weeks before I apply? That manager only confused me more. First he says you don’t lose the history of the card when you close an account, but then later he says the history is erased ten years after closing the account. Then he says it diesn’t matter if your credit cards are bank cards or department store cards, but then he says it does.

One question I would have asked: how much does my credit score change immediately after I pay off my credit cards? Suppose I have 10k in available credit, and I charge about $2500 a month. The day I pay my credit card, my used balance goes from 25% to 0%. Could that significantly improve my score? If I am applying for a mortgage, should I start using cash-only for the few weeks before I apply?

]]> By: J.C. http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141652 J.C. Sun, 30 Mar 2008 17:20:28 +0000 http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141652 @Ryan S. - One major part of the FICO score is debt to credit ratio, so if you have any debt, closing the credit cards out will actually hurt your score. So in general it is best to just leave those accounts open until the lender possibly closes the account for inactivity. @Ryan S. – One major part of the FICO score is debt to credit ratio, so if you have any debt, closing the credit cards out will actually hurt your score.

So in general it is best to just leave those accounts open until the lender possibly closes the account for inactivity.

]]> By: MillionDollarJourney http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141598 MillionDollarJourney Sun, 30 Mar 2008 12:17:09 +0000 http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141598 As far as I understand though, available credit can hurt your chances of getting a mortgage as the banks take that factor into account. That's what it's like in Canada anyways. :) As far as I understand though, available credit can hurt your chances of getting a mortgage as the banks take that factor into account. That’s what it’s like in Canada anyways. :)

]]> By: Ryan S. http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141520 Ryan S. Sat, 29 Mar 2008 23:45:54 +0000 http://www.consumerismcommentary.com/2008/03/29/you-cant-have-too-much-available-credit/#comment-141520 Hm. So... does this mean your opinion is if I have credit cards with zero balances it's way better to keep them open even if they go unused for years? I'm not contesting it, I'm just wondering and doing a little research since I have a couple like that. Hm. So… does this mean your opinion is if I have credit cards with zero balances it’s way better to keep them open even if they go unused for years? I’m not contesting it, I’m just wondering and doing a little research since I have a couple like that.

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