I just finished paying down my credit card balances to zero. I want to lower the credit limits down from about 30k each to around 2 or 3 thousand. Will doing this hurt my credit rating? I understand that closing any accounts can lower a persons credit rating. I have no plans to cancel any credit cards, just lower their limits.
2007-07-30 14:21:13 · 2 answers · asked by drewdeepblue22 2 in Business & Finance ➔ Credit
Lowering the credit limits will help your credit score because your amount of unsecured credit is deemed to be the amount of the credit limit, not what you owe on the card, since you could go out and spend that much any day. I don't think that closing an account will hurt your credit score, if it is closed by the lender it will but not by you. Just call and have the bank/credit card company lower your limit. I wouldn't take it down lower that $5,000 though.
2007-07-30 14:25:55 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Lowering your credit card limits, especially that drastically, will kill your credit score. A good part of your credit score is based on the debt to credit line ratio. You would be better off closing all but one or maybe two credit cards.
2007-07-30 22:07:47 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋