OK, Over the summer I got a discover card. It was my first card and they gave me a huge credit limit, $5K. I have little to no credit and wanted to start building.
Is having a really high limit on that card really bad? I recently just got another card, and the limit is very low. I am thinking that huge limit on the discover card might actually be hurting my credit.
What do you financial experts think? Should I call Discover and have them lower it to $2K? I don’t really need that high of a limit. I never even hit $1K.
No!
You want available credit as high as possible and utilized portion of it as low as possible. Shows you have self control and are not over-extending yourself.
There are credit unions everywhere though, and that’s usually where you’ll get the best rate. I don’t know if it’s correct, but I’ve heard that not all credit unions report to the big 3? Just something to verify if you’re refinancing to build your credit.
My truck is financed through a credit union and it IS reported on my credit scores. :gotme:
yeah I would like it to be reported. I think I will see what lendingtree.com has to offer and go from there. If I can get it at ~5.5-6.5% then I will go with that.
high available credit is good to a point, its high balances that hurt you
i don’t even know what the limit on my amex is, i think the most i’ve ever had on it was like 18K (bought a shit ton of computers for work, not personal debt… lol)
Maybe this is a dumb question, but how would one start building credit if they have none to start with? It is probably a good idea to start since I graduate in a year but have no idea where and how. I still think cash > * but the rest of the world doesn’t
