Questions About $0 Credit Limit On Credit Report

I have heard that having a $0 credit limit reported on your credit report can hurt your score. In my case I have a couple of loans that have balances, including a mortgage, that have $0 credit limit, even though there are balances. Does this affect my credit score or does that only apply to revolving accounts?



Thanks

Comments(3)

  • NewKidInTown314th August, 2007

    Auto loans and mortgage loans are different from revolving credit. A loan is not a charge account and therefore there is no "available credit" to draw upon. For these credit report entries, a zero credit limit does not harm your credit score.

  • NewKidInTown328th June, 2007

    If you have good credt card discipline, why do you need the HELOC plus the program set up fees? See my comments to Joel on this same subject.

    http://www.thecreativeinvestor.com/residential/ViewTopic60583-27-5.html

  • marsten28th June, 2007

    From what I understand it has everything to do with HOW much extra you apply towards the 1st. Too much and you negate the effects of the lower interest 1st mortgage, too little and you negate the effects it would have in the higher interest rate 2nd. I have video that answers this much better than I can now as I just learned about it on Monday....

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