Is it good to have a high credit limit to build credit?

I am 23 and looking to purchase a home exactly one year from now. For the past two or so years I've had all utility bills for a normal home in my name. Not once has any one of them been paid late. I've also had a credit card with Discover for about 3 years and I have a Lenscrafters credit card that was used once and then paid in full. Again, absolutely no late payments, although the most I've ever had charged on the Discover card was about 700 dollars, which was paid at the end of 2 months.





I have a Master's degree and $12,000 in student loans that I will begin to pay off in November.





My question is what is the best way to build my credit until I shop for mortgages? My credit card limit is only $1800. Should I ask for a higher limit and still carry my $0 balance with it? Does it matter?





Also, any tips you may have concerning credit and ways to make it the best it can possibly be would be very appreciated.





Thanks!|||Actually, you DO want a higher limit on the cards that you use often. Close any accounts you never use. And keep any accounts that have a longtime standing.





When credit companies assess your credit score, one of the ways they do this is by the equation:





monthly credit used divided by total available credit.





They do not like to see you using 40-50% of your available credit. In other words, the lower that percentage the better.





If you have a good handle on your bills, by all means ask for a credit increase. For example, if you are charging $300 a month with a $1500 limit, you are using 20% of your credit per month. If you up that limit to $3000 you are only using 10% of your credit per month which is better in the eyes of the credit companies.|||No don't ask for a higher limit. First off it's too tempting to run it up. Also mortgage companies look at the availability of outstanding credit. Cancel the Lenscrafter card or any others that are open. Even if you don't use them, they show as available and it reflects on your credit score.|||It is good that you have plans. I am assuming you have a stable full time job for at least 3 years at the same company? You said that you have a Discover card for 3 years, it is not long enough. Unless you have a pretty big down payment I think you will be having a hard time getting a loan to purchase a home. You need to get more than 1 credit card, but not too many. Get about 3 or 4 credit cards with high credit limit. You said your credit card limit is only $1,800.00. That is very low. It means the credit card company does not believe that you can handle debt of more than $1,800.00. Nowadays you can get a home whether with good credit or bad credit, BUT, they will hit you with high APR. Go to www.suzeorman.com she is very knowledgeable on these kind of things. Good luck!|||The first poster is wrong.





A full 30% of your credit score is determined by your cebt to credit ratio. So if you have a $1,800.00 limit and you owe $900.00 your debt to credit ratio is 50%. To high.





Your debt to credit ratio should never exceed 30% of your credit limit in any given month.





The number of credit cards you have doe's not mater, what doe's is how you manage them.





O.B.T.W. utilities do not show on your credit report unless you do not pay them and they are turned over to collections.