http://ask.metafilter.com/tags/creditlimit Questions tagged with 'creditlimit' at Ask MetaFilter. Mon, 13 Oct 2008 09:53:06 -0800 Mon, 13 Oct 2008 09:53:06 -0800 en-us http://blogs.law.harvard.edu/tech/rss 60 http://ask.metafilter.com/104114/Paying%2DOff%2DDebt%2Dv%2DSafetyNet%2DSavings%2DGiven%2Dthe%2DNew%2DCircumstances Traditional wisdom suggests that saving money while in debt is a bad idea: you pay hundreds of times more in finance charges on money you owe than you would get in interest on money you save. Under this scenario, your "safety net", at least until you are debt-free, would be the credit lines you are clearing out. However, in a response to a Lifehacker comment I made outlining this traditional wisdom, someone replied that given the financial crisis, companies could then lower your credit limit, regardless of cause, killing your safety net. Given this, is the traditional wisdom now wrong? Over the months to come, is the wisest place for any money remaining after bills an interest-earning savings account, or still towards reducing my credit card balance? If a mixture of the two, what ratio would you yourself recommend? Finally, what would you yourself consider a minimum balance to reach for your safety net, if you felt the traditional answer of six months' salary was, for now, too high a goal to be practically reached? tag:ask.metafilter.com,2008:site.104114 Mon, 13 Oct 2008 09:53:06 -0800 credit creditlimit money safetynet savings stumped WCityMike http://ask.metafilter.com/77403/Determining%2Dthe%2Dright%2Dcredit%2Dlimit%2Dfor%2Doptimal%2DFICO%2Dscore How many credit cards should I have and what should my limits be for the best possible credit score? I currently have three credit cards. I use one or two of them for routine purchases throughout the month, but I pay them off when the bill arrives and do not carry a balance. The issuers periodically send me letters saying they've raised my credit limit. I now have way more credit than I really want or need, but I am also confident that I won't abuse it either. <br> <br> I've heard that the FICO score is partially based on your number of credit cards, the ratio of the balance to credit limit and maybe the ratio of total balance to income. In my case, I may charge up to 25% of my net monthly income, but always pay it off at the end of the month. The total credit limit across all three cards is about 35% of my net annual income.<br> <br> Given the above, how can I determine how my credit limits should be set for the optimal FICO score? tag:ask.metafilter.com,2007:site.77403 Thu, 29 Nov 2007 07:02:58 -0800 credit creditlimit creditscore fico amfea