Credit Question

[:D]

Hey everyone, it's your internet pal Colon D, here. I've got a question about credit [cards].

So I was on the phone with Visa today to have them flag my account for my trip overseas and they told me that I have a pre-approval on my file to be bumped from a 5k limit all the way to 13k.

I told them I would think about it but my question is this: If I am responsible with my money and don't carry a balance, are there any drawbacks to increasing my limit? Are there any real benefits to doing it, aside from have more at my disposal when I may need it?

Thanks everyone and I'll listen for your answer off-air.

[2SKATES1STICK]

Take the limit increase.

[AriGold]

Carrying a larger limit and having a zero balance at the end of the month increases your credit score.

More positives then negatives as long as you can manage your money properly.

I have an availability of 10K on my mastercard and keep a zero balance, it has boosted my credit much higher than I expected it to be.

[Go Faulk Yourself]

Really, I find that if I ever want to increase my limit, I do it for when I actually need to do it. I'm not someone who goes indulging all the time so I leave my credit limit fairly low in the first place.

I don't think there's much bad that can come from it, given you said you're a responsible spender.. (But they always say that )

[:D]

Take the limit increase.

[Kragar]

Can't remember for sure, but if you have too much credit available (even without carrying a balance), it could make it tougher to get a new loan, even if your score is better (per Ari's comment above).

Grains of salt on the above... it's been a while since we had to make a similar decision, so my credit knowledge is a little rusty.

FYI, I sometimes listen to Clark Howard on the radio. He talks a lot about credit scores and such. His show or website may be helpful to you, although his focus is probably more American, if it matters.

www.clarkhoward.com/

[:D]

Some good tips, so far.

[goalie13]

It's my understanding, that when banks look at you for bigger things like mortgages they look not just at your credit score, but also at how much debt you are capable of getting into. So if you have several cards with high limits, they may count against you, even if you don't owe anything.

[:D]

Hmm, I may be getting myself into a mortgage in the next few months... maybe I will wait to push it to the limit until after that.

[Brick Tamland]

Take it as long as you are truly responsible. If not, walk away.

[Squeak]

Hmm, I may be getting myself into a mortgage in the next few months... maybe I will wait to push it to the limit until after that.

Probably your best course of action.

The offer to increase will still be there after you take out the mortgage.

[Mr. Ambien]

Take the limit increase. Always.

Any balance you kept that you originally had would reduce your utility, which is what lenders pretty much always scrutinize.

Better utility means improved credit store. Higher utility means higher default risk and therefore less creditworthiness.

[RRypien37]

Carrying a larger limit and having a zero balance at the end of the month increases your credit score.

More positives then negatives as long as you can manage your money properly.

I have an availability of 10K on my mastercard and keep a zero balance, it has boosted my credit much higher than I expected it to be.

This.

Every single time I was approved for increase I have gotten it.

Showing the bank you have a big LOC or CC limit and being able to manage it without going crazy spending goes a long way.

[Apple Juice]

While were on this topic, is there a way to check your credit score without paying a fee? I'm trying to check my credit score (which I know will probably be good because I never have any remaining balance and always pay on time) without having to pay like a $20 fee everywhere I've looked.

I've only had my credit cards for about 17 months and 21 months respectively so I imagine getting a check won't help much but I still want to check.

[RRypien37]

While were on this topic, is there a way to check your credit score without paying a fee? I'm trying to check my credit score (which I know will probably be good because I never have any remaining balance and always pay on time) without having to pay like a $20 fee everywhere I've looked.

I've only had my credit cards for about 17 months and 21 months respectively so I imagine getting a check won't help much but I still want to check.

I'll answer this because I love your sig.

You have to pay.

The best you can do for free is go see your banks FSR (Financial Services Rep) and they can give you your beacon score (which is very similar/close to your actual credit score).

[Denguin]

Literally no downside to increasing unless you have spending problems, as others have said. It will improve your credit score by quite a bit, given the magnitude of the proposed increase. Depending on what your current status is, that may help you in getting the mortgage you want a lot easier.

After that... having a mortgage on file will send your credit score through the roof. Funny how it works that way... You need to borrow more money to be viewed more highly in the credit industry.

[Denguin]

I'll answer this because I love your sig.

You have to pay.

The best you can do for free is go see your banks FSR (Financial Services Rep) and they can give you your beacon score (which is very similar/close to your actual credit score).

While were on this topic, is there a way to check your credit score without paying a fee? I'm trying to check my credit score (which I know will probably be good because I never have any remaining balance and always pay on time) without having to pay like a $20 fee everywhere I've looked.

I've only had my credit cards for about 17 months and 21 months respectively so I imagine getting a check won't help much but I still want to check.

There are always ways you can get a credit monitoring subscription for free. They're not the most ethical methods, but nothing wrong with taking advantage of certain promotional flaws.

PM me for details if you're genuinely interested.

[Mr. Ambien]

While were on this topic, is there a way to check your credit score without paying a fee? I'm trying to check my credit score (which I know will probably be good because I never have any remaining balance and always pay on time) without having to pay like a $20 fee everywhere I've looked.

I've only had my credit cards for about 17 months and 21 months respectively so I imagine getting a check won't help much but I still want to check.

Really, around $15 to get your credit score, and more importantly, credit history, is not bad -- in Canada, it's just two agencies to deal with rather than the 3 in the US. There's really no need to take on their "monthly" service unless it's right around time to get a 5-7 figure line of credit. I check mine every year. The free one works too, just takes too long for them to mail it back to me. I prefer to check online.

[Apple Juice]

I'll answer this because I love your sig.

You have to pay.

The best you can do for free is go see your banks FSR (Financial Services Rep) and they can give you your beacon score (which is very similar/close to your actual credit score).

There are always ways you can get a credit monitoring subscription for free. They're not the most ethical methods, but nothing wrong with taking advantage of certain promotional flaws.

PM me for details if you're genuinely interested.

Really, around $15 to get your credit score, and more importantly, credit history, is not bad -- in Canada, it's just two agencies to deal with rather than the 3 in the US. There's really no need to take on their "monthly" service unless it's right around time to get a 5-7 figure line of credit. I check mine every year. The free one works too, just takes too long for them to mail it back to me. I prefer to check online.

Fair enough. I guess I found it kinda stupid that I have to pay to check my score when I was thinking it was free... I mean as long as it's not over $50 I'll do it if I want an accurate check.

[Offensive Threat]

Hmm, I may be getting myself into a mortgage in the next few months... maybe I will wait to push it to the limit until after that.

When I bought my first place Mastercard raised my limit from 5K to 12K almost overnight. Nothing like having tangible assets to increase lender confidence.