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<p>haha Who told you that?</p>
<p>guys, why argue? Here is a write up…</p>
<p>[How</a> credit scores work, how a score is calculated (Page 1 of 3)](<a href=“Bankrate: Guiding you through life's financial journey”>9 Best Money Market Account Rates For February 2024 - Up to 5.30% | Bankrate)</p>
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<p>I already provided links that state a lot of those same things. Unfortunately, some people have to still argue when the facts are in front of them.</p>
<p>insomniatic - not everything that’s posted on the internet is correct either, same with what you hear on TV. It just takes a bit of common sense, which I think you are lacking.</p>
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<p>Opening a new credit card or increasing your credit limit may result in the creditor doing a “hard” pull on your credit report.</p>
<p>Having more than a few “hard” pulls over a short period of time is bad for your credit, because it suggests you are borrowing a lot more than you have previously. </p>
<p>But having “hard” pulls on your report is different than having high credit limits.</p>
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Is this what you are looking for?</p>
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<p>Exactly. You don’t want to open too many credit cards in a short amount of time.</p>
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<p>Well you think what you want. If you think you are right, then more power to you.</p>
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<p>Where’s the link?</p>
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<p>They care about assets if you default and they try to collect what they can.</p>
<p>They do not care about assets when issuing you credit. They must assume that as unsecured debt they will be “last in line” behind your home lender and your car lender and such and may not be able to collect many of your assets. Their risk model takes this into account. This is why credit cards charge 16% interest and home equity loans are 4%.</p>
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<p>Again, MAY, not WILL.</p>
<p>Why argue over semantics? The reality is, you are just beginning to build your credit. Most of the posters here, in the parent cafe, have established years and years of credit. With a long history of credit (I believe they like to see at least 5 years), reducing the available credit on one of many long-standing accounts with excellent credit is not going to make much of a difference in the overall debt to credit ratio (ESPECIALLY for those of us with no debt). So why are you pushing this ad nauseum?</p>
<p>It is important to a lender that debt to income ratio is not too high. Lenders do consider unused credit lines as part of a borrower’s debt, even if it is not used. The rationale is a borrower could tap into that credit line any time he or she wants to. A mortgage lender would not want a borrower to use more than 35-40% of his income to pay for his monthly debt, and below 30% on his mortgage plus other housing related expenses (like insurance, taxes, housing association fees). </p>
<p>When it comes to credit scores, every credit report company does it differently. When they talk about debt utilization (keeping it below X%), they are assuming the amount credit (and debt) is within acceptable debt to income ratio. The ration is calculated based on amount of credit available and amount of usage. If you have 2 credit cards, both of them have 5000 credit line, and you have have 1000 balance on each, then your ratio would be 20%. If you were to cancel one and move the 1000 balance to another line, then your ratio would be 40%, which is worse for your FICO score. But if your income couldn’t support 10,000 credit line, then it is better to close off one, especially if the balance is zero.</p>
<p>For some people, without good planning, may have many accts open over time, and those open unused credit lines are viewed as part of your total credit limit.</p>
<p>She already owes $48,000 as her share of the national debt, so why not trust her with another $18,000?</p>
<p>Some of the links (though I fear they will be parsed or criticized)</p>
<p>[Improve</a> Credit Score: Tips to Fix Poor Credit & Raise Your FICO Score](<a href=“http://www.myfico.com/CreditEducation/ImproveYourScore.aspx]Improve”>How to Improve Your FICO Score | myFICO)</p>
<p>[How</a> to Improve Your Credit Score | <a href=“http://www.clarkhoward.com%5B/url%5D”>www.clarkhoward.com](<a href=“Clark.com - Advice You Can Trust From Clark Howard and Team Clark”>Clark.com - Advice You Can Trust From Clark Howard and Team Clark)</a></p>
<p>[Is</a> too much credit bad?? - Credit Repair Forum from Creditnet](<a href=“http://forum.creditnet.com/credit-talk/t-too-much-credit-bad-24738.html]Is”>Is too much credit bad?? | Creditnet.com - Credit Card and Credit Repair Help Forum)</p>