What are Those Numbers on Your Credit Report?: High Credit and Credit Limit

<h1>What are Those Numbers on Your Credit Report?: High Credit and Credit Limit</h1>Author: <a title="Ronnica Rothe" href="http://www.articlesbase.com/authors/ronnica-rothe/16323.htm">Ronnica Rothe</a> There are several numbers reported on your credit score that may not be familiar to you.  Two of these numbers are called “high credit” and “credit limit.”  There are also important things to remember about these numbers and how the reflect on you and your credit worthiness.
 
<a href="http://www.visioncredit.org/credit-counseling/credit-score-information/credit-definitions/high-credit/">High credit</a> is the maximum amount that has ever been carried on a credit card or loan.  It may be reported on your credit report because it gives a good idea at your ability to repay debt.  If you have a large high credit amount but your current balance is much lower, that shows that you are able to repay your credit card or loan.
 
Another thing that high credit might indicate is whether you go past the preset spending limit on your card.  This cannot be determined properly without more information, however, as it is possible that you lowered the limit on that card yourself.
 
Another number that is frequently reported on your credit report is your <a href="http://www.visioncredit.org/credit-counseling/credit-score-information/credit-definitions/credit-limit/">credit limit</a>.  The credit limit on a certain credit card is the amount allowed to be borrowed either through purchases, cash advances, or interest and fees.  The credit card company determines this figure based on how big a credit risk they perceive you to be.  It is believed that you will be able to repay your debt if you stay within your credit limit.  If you go beyond it, you will have to pay an <a href="http://www.visioncredit.org/credit-counseling/credit-score-information/credit-definitions/over-the-limit-fee/">over-the-limit fee</a>.  You do not, however, have to accept the credit limit offered to you as it is possible for you to lower the credit limit on your card.
 
You are most likely more familiar with this number as this is also given on your credit card bills, but there is something that you should know about it.  More and more creditors today are offering credit cards with no preset spending limit.  While this may sound great, there is a problem with how this type of credit card is often reported to the credit bureaus.  In most cases, your credit report will reflect that you have a $0 credit limit on that account.  This makes it appear that you are spending beyond your credit limit, thereby lowering your credit score.
 
It is important to regularly review your credit report for errors.  Talking to a financial counselor can help you determine what steps you can take to improve your credit.About the Author: Ronnica Rothe is a graduate with honors from the University of Oklahoma and a current student at Southeastern Baptist Theological Seminary. She works with <a href="http://www.visioncredit.org">Vision Credit Education</a> to help individuals get out of debt and reach their financial goals.Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/credit-articles/what-are-those-numbers-on-your-credit-report-high-credit-and-credit-limit-437031.html" title="What are Those Numbers on Your Credit Report?: High Credit and Credit Limit">What are Those Numbers on Your Credit Report?: High Credit and Credit Limit</a>

There are several numbers reported on your credit score that may not be familiar to you. Two of these numbers are called “high credit” and “credit limit.” There are also important things to remember about these numbers and how the reflect on you and your credit worthiness.

High credit is the maximum amount that has ever been carried on a credit card or loan. It may be reported on your credit report because it gives a good idea at your ability to repay debt. If you have a large high credit amount but your current balance is much lower, that shows that you are able to repay your credit card or loan.

Another thing that high credit might indicate is whether you go past the preset spending limit on your card. This cannot be determined properly without more information, however, as it is possible that you lowered the limit on that card yourself.

Another number that is frequently reported on your credit report is your credit limit. The credit limit on a certain credit card is the amount allowed to be borrowed either through purchases, cash advances, or interest and fees. The credit card company determines this figure based on how big a credit risk they perceive you to be. It is believed that you will be able to repay your debt if you stay within your credit limit. If you go beyond it, you will have to pay an over-the-limit fee. You do not, however, have to accept the credit limit offered to you as it is possible for you to lower the credit limit on your card.

You are most likely more familiar with this number as this is also given on your credit card bills, but there is something that you should know about it. More and more creditors today are offering credit cards with no preset spending limit. While this may sound great, there is a problem with how this type of credit card is often reported to the credit bureaus. In most cases, your credit report will reflect that you have a $0 credit limit on that account. This makes it appear that you are spending beyond your credit limit, thereby lowering your credit score.

It is important to regularly review your credit report for errors. Talking to a financial counselor can help you determine what steps you can take to improve your credit.

Ronnica Rothe is a graduate with honors from the University of Oklahoma and a current student at Southeastern Baptist Theological Seminary. She works with Vision Credit Education to help individuals get out of debt and reach their financial goals.

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Article Tags: Credit Cards, Credit Report, Credit Limit, Financial Counseling, High Credit

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