High Credit Limits - why?

[BamaInvestor]

 

 

 

Can anyone tell me what the value or need is for several high credit limit cards such a 14k, 20k etc.?

 

 

 

I know util comes into play to a degree, but why the obsession for high limits?

 

 

 

 

As everyone has stated including yourself that high CL's reduce the percentage of cc utilization which plays a moderate part in your credit score. Some ppl like high limit cards because they actually use those limits and PIF on a monthly basis. Others like having both as someone stated high limits beget higher limits when applying for other cards. However, income plays a vital part in getting those high limits, therefore, if your income doesn't support it then you won't get 'em. Multiple high limits cards suggest to lenders that you are responsible in handling credit which makes you a low credit risk based on lender algorithms which can include but not limited to credit score, income, # of accts, & cc utilization.

[tee2503]

This is an excellent summary of what this actually means from a credit perspective.

 

I also agree with the statements that - lenders are not interested in providing credit to anyone that appears to need it. If you don't need it then you're in the best position to get it. Need = risk

[cv91915]

 

 

 

Sorry…. It’s not rhetorical question.

 

 

 

If you take your current debt (whatever it may be today) and If you had an emergency this afternoon and needed to max out your highest limit

card that you have, would that lead to financial trouble for you?

 

 

 

 

<-- Indicates that the poster is trying to be funny.