I want to increase my credit rating, so I have been putting small purchases like trips to the grocery store on my card. I pay it off every month. I have had this card for over five years, and have never missed a payment. My limit has been slowly increased over the years and is now $5,000, but my balance is never over $500.

Do creditors veiw you as a high risk if you have a high limit on your card?

In my experience I would say that is doubtful, however, when I think about it I have about 5 credit cards and none of them have over a $10,000 limit.

Maybe another poster will prove me a liar?

Normally it isn't the LIMIT that puts you at rish for a lower credit score; it is how MUCH of your limit you actually use and keep a balance on.

i.e. if you have a $5,000 limit and you are pretty much always over a $4,000 limit without ever really paying it off, that might lower your score.

There are a lot of factors that go into your credit score, the number of credit cards you have, what percentage of credit you are actually using (keeping a balance on), late payments, loans, collections accounts, etc.

Only if you don't pay what is due: if you don't, you're in debt and that's a no-no

[Hedwig]

High credit limits are generally good. As others have mentioned, it helps your ratio. A lot of your score is based on the ratio of credit used to the available credit.

The only time it would be bad is if you get to the point that you have too much available credit for your income. I don't think one $5K card is going to do that.

Enjoy the good history you've established!!