Banks are the funniest things.

**guest56464** · 04-25-2007, 10:55 AM

Yeah... our bank has done the same thing. It's usually around the time when we get taxes back and pay most of the card off. But i has helped a lot... especially last year when my mom died and we had to pay for tickets from RI to Hawaii, hotel, car, food... it was hell... but we paid a lot of it off this year and they raised out limit by $1500. Since I paid them most of what we owe I expect to get something in the mail telling us "Congratulations!" ...it's raised again.

**FrugalMomof3** · 04-25-2007, 10:58 AM

Originally Posted by Luv2BeFrugal

We get those, too... We're actually talking about calling and having them reduced because in a few years we want to get a house...and your credit lines count against you when you go for a loan (whether you have charges on them or not). (Dh is an Accounting major...he was shocked to find this out!).

Can you explain exactly what you mean? I have quite a few open account all with a $0 balance but with a total of over $40,000 total credit available to me (counting all credit limits into 1). I want to close more account but dont want it to effect my credit score (I have 779). TIA!

**YankeeMom** · 04-25-2007, 04:28 PM

When banks evaluate your finances before allowing you to get a mortgage with them, the take into account not only your credit score but also how much "open credit" you have available to you. Sure, you may have $40,000 in open credit & zero balances...but the bank looks at it from the perspective of: that's just $40,000 you can put yourself in the hole very very easily

So having open credit doesn't hurt your credit score, but it does make the bank scrutinize (sp) you a bit more when you go for a loan.

HTH

**mikandmari** · 04-25-2007, 06:51 PM

Tracy, if you have a credit score of 779, I wouldn't worry about it.

I was told that a when your score is that high, mortgage underwriters feel that you are smart enough with your money that you won't take on more debt than you can handle. It's something to be proud of!

The last time I checked, mine was 710. I never take on more debt than I can pay, but I do hope to see the score go up as the debt ratio goes down.