MBNA High Limit on Credit Card Review
Author: AJ
Posted: Wed Jun 07, 2006 7:52 am
Post subject: Why Does MBNA Issue Such High Limits To Everyone?
Is there anyone out there that has a low limit mbna card? I never thought I would have a 19k. In other words, why do they increase limits ( at least for me) every 3 months. It's funny they don't even inquire about bank statements. I guess when Bank Of America fully takes over, all that will change.
Author: tonyb
Posted: Wed Jun 07, 2006 10:02 am
Post subject: MBNA High Limit on Credit Card Review
Because you're a nice guy.
Well, actually, it helps you (as long as you enough discipline not to blow through your credit line on useless ****). The more credit you have, the lower your debt/credit ratio is when you do carry balances on different accounts. It also helps you if you even if pay your balance off every month.
Let's say you use your card for regular grocieries, bills, gas, etc., and it comes to say $1,000 a month. And let's say you have a $2,000 CL. Even if you pay that balance off every month, depending on when the pull was done, your credit report could show a $1,000 balance on $2,000 of credit, or a 50% debt/credit ratio. This would drag down your credit score most likely. This is why financial advisors recommend not using credit cards for a few months before getting a mortgage or other major purchase, especially if you're on a border between different credit score levels.
If you had a $20,000 CL instead, that $1,000 won't be a 50% debt/credit ratio, instead it'll show up as 5%. That wouldn't drag down your score much, if at all.
So high balances are good, especially if you pay your balances off every month. However, if you're a chronic spender, and the temptation is just too much, get rid of it.
Author: mouse
Posted: Wed Jun 07, 2006 4:33 pm
Post subject: Re: Why Does MBNA Issue Such High Limits To Everyone?
Quote:
"AJ"
Is there anyone out there that has a low limit mbna card? I never thought I would have a 19k. In other words, why do they increase limits ( at least for me) every 3 months. It's funny they don't even inquire about bank statements. I guess when Bank Of America fully takes over, all that will change.
ME...NO MBNA CLI FOR 10+ YEARS
MY QUANTUM IS NOT EVEN $35,000
(one of my lower limits)
Author: spjoink
Posted: Wed Jun 07, 2006 6:42 pm
Post subject: MBNA High Limit on Credit Card Review
i seem to remember you had a card with $4500 and one with $10000 c.l
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Jun 07, 2006 7:52 am
Post subject: Why Does MBNA Issue Such High Limits To Everyone?
Is there anyone out there that has a low limit mbna card? I never thought I would have a 19k. In other words, why do they increase limits ( at least for me) every 3 months. It's funny they don't even inquire about bank statements. I guess when Bank Of America fully takes over, all that will change.
Author: tonyb
Posted: Wed Jun 07, 2006 10:02 am
Post subject: MBNA High Limit on Credit Card Review
Because you're a nice guy.
Well, actually, it helps you (as long as you enough discipline not to blow through your credit line on useless ****). The more credit you have, the lower your debt/credit ratio is when you do carry balances on different accounts. It also helps you if you even if pay your balance off every month.
Let's say you use your card for regular grocieries, bills, gas, etc., and it comes to say $1,000 a month. And let's say you have a $2,000 CL. Even if you pay that balance off every month, depending on when the pull was done, your credit report could show a $1,000 balance on $2,000 of credit, or a 50% debt/credit ratio. This would drag down your credit score most likely. This is why financial advisors recommend not using credit cards for a few months before getting a mortgage or other major purchase, especially if you're on a border between different credit score levels.
If you had a $20,000 CL instead, that $1,000 won't be a 50% debt/credit ratio, instead it'll show up as 5%. That wouldn't drag down your score much, if at all.
So high balances are good, especially if you pay your balances off every month. However, if you're a chronic spender, and the temptation is just too much, get rid of it.
Author: mouse
Posted: Wed Jun 07, 2006 4:33 pm
Post subject: Re: Why Does MBNA Issue Such High Limits To Everyone?
Quote:
"AJ"
Is there anyone out there that has a low limit mbna card? I never thought I would have a 19k. In other words, why do they increase limits ( at least for me) every 3 months. It's funny they don't even inquire about bank statements. I guess when Bank Of America fully takes over, all that will change.
ME...NO MBNA CLI FOR 10+ YEARS
MY QUANTUM IS NOT EVEN $35,000
(one of my lower limits)
Author: spjoink
Posted: Wed Jun 07, 2006 6:42 pm
Post subject: MBNA High Limit on Credit Card Review
i seem to remember you had a card with $4500 and one with $10000 c.l
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 10:17 PM
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