Managing your credit is one of the most important activites in your economic life. An item as simple as your credit limits on your credit cards can have a huge affect on your credit scores. I had a client today who in his entire 10 year credit history had been late on only one payment and that was more than five year. Yet his credit score was in the low sixes. He had a few small credit cards with low limits and even though the balances were not high, they were above 50% of his limits. This alone would prevent him from getting approved for many mortgages and he would have to pay higher rates for car loans since he would not be eligible for the low promotional rates. When you are talking to your credit card companies, always ask them to increase your credit limit.
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