How do I raise my credit availability from 0?
To begin, I just finally cleared off all the old small debts I’ve had since I was 18, I’m 24 now, and they only added up to about 1000 dollars. When I check my score now it says that I’m at 591 through Experian, however its saying that I have a 0 credit availability. I have 22k in school loans and that is all that is left on my credit report. I want to apply for some small credit cards to help to raise my score, but I’m thinking that a 0 availability is an auto decline, right? If someone can explain this to me, and how I can get it above 0 that would be wonderful. I’m still trying to figure all this credit stuff out and it seems that the rules change everyday. Thanks for the help!
So a credit availability of 0 is good? How can that be when my husbands is 100% and yet he just got approved for a new home?
Your available credit is how much you have been approved for but haven’t spent yet. A high number is bad because it shows creditors that you could potentially dig yourself in too deep.
For example Lets say you had a credit card with a $10,000 limit and your balance is $500. If your credit report only showed the debt amount then it would look like you were only $500 in debt. But the $9500 in available credit tells other potential creditors that you’re only one spending spree away from being $10,000 in debt.