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What defines a "low credit limit" on a credit report?
My credit reporting service says a major inhibitor to my credit score is low credit limit. I am considering opening a secured credit card to increase my credit limit, but am unsure of the amount to put aside.
What determines a less-than-low credit limit: is it a specific dollar amount or is it relative to some other credit determining factor? If a specific dollar amount, what is that amount?
Thank you for your help
3 Answers
- ?Lv 41 decade agoFavorite Answer
It's just that--you have a history of very low credit limits on your revolving lines of credit. I would steer clear of opening another credit card to fix the problem. You are better off calling your current creditors and asking for higher credit limits. Sometimes you can push them by threatening to close your account because another company offered a higher limit (be realistic, if you have a $500 limit now, say you were offered a $1000 limit at another company). If they deny you--then continue to build more history with them. Opening another account only makes you look desperate on your credit report and can actually lower your score in some cases.
