Reducing Credit Limit From Credit Card Companies? - Posted by Nimesh Patel

Posted by Michael on July 10, 2002 at 19:57:52:

Check out the website for Fair Isaac FICO scoring. I don’t recall the web address, but any search engine will get you there.

I did some mortgage brokering and have some experience with raising scores. Yes, reducing the balances will lift your score- only as long as there are zero balances. Let me explain. One factor is how much credit is “availiable” and the other is what % of that “available” credit is being used. So, If you have, lets say, a $1500 balance on a $3000 limit your are utilizing (or have run up) 50% of your avaialble credit. That would lower your score. If you lowered your available credit to reflect about 10% to 25% utilization- that would be ideal.

Hope that helps.

Reducing Credit Limit From Credit Card Companies? - Posted by Nimesh Patel

Posted by Nimesh Patel on July 10, 2002 at 19:41:02:

Hi, I was wondering what are the pros and cons of voluntarily asking my credit card companies to reduce my
credit card limit? Right now, I have three credit cards and
my total credit card limit is $25,000. I want to reduce
the credit limit from each credit card to about $3000. What
are the pros? What are the cons? Will it increase or decrease my credit score?