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Old 06-01-2011, 11:40 AM
lerrygibson lerrygibson is offline
Join Date: Apr 2011
Posts: 44
Default Re: does reducing credit limit help or hurt?

Originally Posted by singlemom View Post
Reducing the total available debt not used will improve your score. However don't do it too quick or it could hurt your credit.
This is very helpful and gives very clear understanding about your credits and and the score.
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Old 08-20-2011, 02:44 AM
georgeisbroke georgeisbroke is offline
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Join Date: Aug 2011
Location: Michigan
Posts: 5
Default Re: does reducing credit limit help or hurt?

I had that same situation once.

I canceled several cards to resolve it. From their perspective, you could have and emergency, divorce, lose a job, ect... and charge a-way, sky high. More of a risk than they are willing to take.

Just make sure that the cards you keep are under that 70%, and keep an eye on % of unsecured debit to income ratios. (sorry, I don't recall what that ideal ratio is, I used to know a lot about these numbers and ratios a few years back).
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Old 08-06-2012, 08:44 AM
outlookmoney outlookmoney is offline
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Join Date: Jul 2012
Posts: 2
Default Re: does reducing credit limit help or hurt?

In my opinion reducing credit card limit always helps since that will help you with being in control of your expenses using cards.Helps control your spends. Charge cards, like credit cards, is an alternative payment method to cash purchases. There is no preset credit limit on your charge card. Your spending and repayment pattern defines the limit. The more you spend and pay on time, the greater is the credit limit you enjoy on your card. However, unlike credit cards, all purchases using a charge card during a billing cycle needs to be repaid in full by the due date. This effectively means that you get a credit for anything between 20 days and 50 days to repay the dues.

Hope this would help,
Outlook Money
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Old 10-09-2012, 08:23 PM
Guru Guru is offline
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Join Date: Oct 2012
Posts: 1
Default Re: does reducing credit limit help or hurt?

It doesn't matter how much credit you have open. Your credit score is based on the % of the credit you are using. For example, if you have a credit card with a$10,000 limit, your credit will be effected if you owe $7,500 or more. Thus, you are better off with two cards and spreading that debt between the two to keep the debt to credit limit as low as possible.
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Old 10-12-2012, 03:12 AM
SMSF101 SMSF101 is offline
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Join Date: Oct 2011
Posts: 20
Default Re: does reducing credit limit help or hurt?

Money could really be deceptive. With the range of new things and stuffs that you might be desiring to have, buying could be considered as one of man's leisure. So credit cards are like magic wands that you can easily wave at things you'll be buying. But we often forgot that there would always be a limit. I guess, in your case, it would be better to lower your credit card limit.
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