Credit Tips: Should I Lower The Limit on My Credit Card

Posted On: January 1, 2006

Author: Chris
Posted: Wed Jul 07, 2004 4:49 pm
Post subject: Should I Lower The Limit on My Credit Card
2/11/2002 11:17 pm CDT

I have a MBNA Quantum Mastercard. It has a limit of $29,000. I have no possible need for a limit like that. I think its hurting my credit rating a bit since I end up having too much “potential” debt. I don’t use the card that much and never carry a balance on it. I would like to keep the card since I’ve had it for so long.

Is there a way to get the limit lowered without it looking bad on my credit report?

Author: Ira Stoller
Posted: Wed Jul 07, 2004 4:50 pm
Post subject: Should I Lower The Limit on My Credit Card

2/12/2002 0:19 am CDT

Of course. Simply call the 800 number which is listed on your card and on every statement and tell them the limit that you want and they’ll lower it for you. I’ve done this several times for exactly your reasons; I don’t want too much revolving credit (translation: credit card limits) handing around. Therefore I ask that it be reduced. It will take you 3 minutes once you’re connected.

Author: Chris
Posted: Wed Jul 07, 2004 4:51 pm
Post subject: Should I Lower The Limit on My Credit Card

2/12/2002 8:35 pm CDT

Ira,

Thanks. I know the mechanics of how to lower the limit, rather I was concerned that the transition from higher to lower might be perceived as a loss of confidence on the credit card issuer’s part. Can one get a comment attached that states the limit was lowered at the card holder’s request?

I’m sorry if my question was stated in a confusing way.

Author: mouse
Posted: Wed Jul 07, 2004 4:52 pm
Post subject: Should I Lower The Limit on My Credit Card

2/12/2002 1:04 am CDT

It will hurt if you have ever been @ $29,000.

Just have it put at your highest balance you ever had, rounded up to the next $1,000.

There is a debt to credit limit ratio you have to worry about.

I personally would NEVER do it, but if you want to, fine.

Author: Chris
Posted: Wed Jul 07, 2004 4:52 pm
Post subject: Should I Lower The Limit on My Credit Card

2/12/2002 8:39 pm CDT

“I personally would NEVER do it, but if you want to, fine.”

Thanks for the feedback. I’m interested in why you would “NEVER” do it. Am I considering a foolish move? What’s the downside? (Not trying to be argumenative, here.)