Lowering Credit Card Limit
Author: Michael
Posted: Wed Jul 07, 2004 4:41 pm
Post subject: Lowering Credit Card Limit
2/12/2002 10:17 am CDT
Every year Discover raises my limit around Christmas, in the hope that I will spend more with the card. The limit is now $15,000. I wonder if lowering it to $10,000 will help or hurt my credit rating. I have other cards, and I pay my balance in full each month. I cannot envision when I would ever charge this much on Discover, especially now that they have changed their rebate terms. I do want to keep the card, since I have had it since 1986. I just don't want to be maxed out on my credit reports regarding unsecured credit.Does anyone have an opinion?
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Author: maxy
Posted: Wed Jul 07, 2004 4:42 pm
Post subject: Lowering Credit Card Limit
2/12/2002 1:10 pm CDT
Leave your discover card the way it is. The higher your
overall credit line the better for your credit rating.
What creditors look for is an average of your debt against
total credit line. The higher this is, the lower your
debts will look.
What is not good is to have all credit cards used to the
limit. It's better to store your card safely and not use it.
If your limit is lowered, it might show up on your credit
report without explaining you asked for it, so it will
look questionable to other creditors in the future.
Author: dave
Posted: Wed Jul 07, 2004 4:43 pm
Post subject: Lowering Credit Card Limit
2/12/2002 8:50 pm CDT
I agree with Maxy. If you get into a situation where you are applying for a mortgage and the lender thinks you have too much available credit, you can always close some accounts or ask for lower limits. Otherwise, you're doing just fine with the 15K limit.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Jul 07, 2004 4:41 pm
Post subject: Lowering Credit Card Limit
2/12/2002 10:17 am CDT
Every year Discover raises my limit around Christmas, in the hope that I will spend more with the card. The limit is now $15,000. I wonder if lowering it to $10,000 will help or hurt my credit rating. I have other cards, and I pay my balance in full each month. I cannot envision when I would ever charge this much on Discover, especially now that they have changed their rebate terms. I do want to keep the card, since I have had it since 1986. I just don't want to be maxed out on my credit reports regarding unsecured credit.Does anyone have an opinion?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: maxy
Posted: Wed Jul 07, 2004 4:42 pm
Post subject: Lowering Credit Card Limit
2/12/2002 1:10 pm CDT
Leave your discover card the way it is. The higher your
overall credit line the better for your credit rating.
What creditors look for is an average of your debt against
total credit line. The higher this is, the lower your
debts will look.
What is not good is to have all credit cards used to the
limit. It's better to store your card safely and not use it.
If your limit is lowered, it might show up on your credit
report without explaining you asked for it, so it will
look questionable to other creditors in the future.
Author: dave
Posted: Wed Jul 07, 2004 4:43 pm
Post subject: Lowering Credit Card Limit
2/12/2002 8:50 pm CDT
I agree with Maxy. If you get into a situation where you are applying for a mortgage and the lender thinks you have too much available credit, you can always close some accounts or ask for lower limits. Otherwise, you're doing just fine with the 15K limit.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:58 PM
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