Question on credit card limits

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markr867
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Question on credit card limits

Postby markr867 » Sat Oct 06, 2012 8:27 am

When I was around 18 years old, my mom signed me up for a credit card before I went to college so I could start building some credit. We were both on the account, and I used the card at school for necessities only like books and my parents paid it off every month. Once I graduated, I took over responsibility for paying. I never looked at the credit limit because I would only put around $50 or so on the card each month and pay it off.

I recently looked up the credit limit and it is $15,000. My parents have a credit score in the 800s, and I know that is the reason why the card was given a $15,000 limit.

My question now is when I go to figure out my total credit available to calculate my utilization ratio, do I count all $15,000 as available to me? Is it split evenly because my mom is still on the card? I'm just not sure how that works. Thanks for any responses!

Tightwad
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Re: Question on credit card limits

Postby Tightwad » Sat Oct 06, 2012 11:01 am

markr867 wrote:My question now is when I go to figure out my total credit available to calculate my utilization ratio, do I count all $15,000 as available to me? Is it split evenly because my mom is still on the card? I'm just not sure how that works. Thanks for any responses!

Yes. No. You're welcome.

A lender will count the whole $15K as availble to you regardless if you are on the card individually, a co-maker, or as an authorized user.

JMC
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Re: Question on credit card limits

Postby JMC » Sat Oct 06, 2012 6:44 pm

Also, if you remove your parents from the card they will likely drop the credit limit.


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