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Released: May 14, 2013
Credit card limits and saving while you’re young
Source: Michelle Singletary, Washington Post (Free Registration)
Q: Michelle, do you know if not having a credit limit on a credit card (AMEX, actually) can adversely affect your credit score (I’ve been told that by a loan officer)?
Michelle: Your credit limit does matter but only as it relates to how much debt outstanding you have on any one credit card and all of the cards together. One of the top factors that go into your credit score is amount owed. It makes up about 30 percent of the FICO score, the one most used by lenders. Your credit limit falls into this category, according to the FICO scoring model.
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