Credit Card Limit / Debt Ratio... etc..

[sead1234]

Ok so I must admit that I have built my credit over the years since I was 18 years old. Only problem is that I feel too much credit could be a problem.

I'm 25 years old and I have a 21,000 dollar credit card limit with my Bank of America Visa Signature Rewards Card. I honestly don't many people my age with a credit limit even close to that.... let alone my fixed rate of 7.9% as well....

Ok so I only have about 4200 charged on the card which I am of course moderately paying off each month. But is it worth having such a high limit?? Seriously, it's nice that they keep on raising my limit every two months, but I'm not stupid enough to fall into Bank of America's trap by charging it up to my 21,000 limit.

So my question in the end is.... if I'm not really using much if any of my 21,000 limit.... will it hurt me?? or is it just a myth that un-used credit can harm someone in the long run...??

[Plastic-Lover]

Usually it is seen very positively from credit score perspective if your credit card debt is less than 35% of your credit limit, You having 21000 in limit will give you more room to use your credit card without negatively affecting your score.

[Jeanie]

Thank you Plastic-Lover!