So I got approved for a loan...

[white_2kgt]

In fact, I just got a letter in the mail today that they had raised my limit again. Guess they want me to spend more money .

call them back and tell them to lower it! if you don't plan on using it, then theres NO need to have it, all it can do is lower your overall score.

can you explain this, how does having a larger limit lower you credit score, ive never heard of that before

credit score is based on amount of credit you COULD have and the amt you have used, plus your history of paying on time, etc. So if you have a credit card with a line of 20k that is 20k less available to have extended to you for other things, cars, house, personal loans, etc. Now, if you have 2 CC's both with 20k limits, well you can see where that is going.

Also, if you have a lower available limit, that puts a cap on the number of turbo's and JDB bling you can buy with them , also lowering your score (b/c you have USED that available credit).

[REED]

Available credit is a risk. But then again, having a balance thats 80% of your limit all the time is also a risk.

I don't know why I wasn't thinking of it like that, this whole "being out of school" thing has turned my brain to mush I think

[Sijray21]

credit score is based on amount of credit you COULD have and the amt you have used, plus your history of paying on time, etc. So if you have a credit card with a line of 20k that is 20k less available to have extended to you for other things, cars, house, personal loans, etc. Now, if you have 2 CC's both with 20k limits, well you can see where that is going.

this is VERY good information that i was not aware of before - i'll actually be calling my credit card company to lower my limit in a few days.

[bimmerboodle]

does anyone have good reccomendations for a first credit card, I'm pretty much clueless about that kind of stuff. I have bills, etc in my name but no loans, etc that would build my credit.

anything other than a card that is backed by MBNA, they suck BIG time, oh and get a FIXED rate, not a 'floating' rate. Sure as shit the one month you can't pay off the whole thing, is when your rate goes up!

NEVER make a late payment or up to the stratosphere the rate will go...that applies to any other loans or credit you may have as well...it is called universal default
http://credit.about.com/b/a/040551.htm

[Dave]

eh, it only went from 3500 to 4k, so I'm not wasting my time. I'll stop it when it gets beyond a point that I can actually use.

[CaptainHenreh]

I actually called to cancel 2 my credit cards today. I haven't used them in 6 months, so out the door they go!

[.RJ]

Keeping accounts long term and having available credit is a good thing