Any harm in reducing credit lines?

red259 · ‎02-10-2017

I just put in to reduce the credit line on my citi card and I wonder if there are any drawbacks besides how it impacts util? The reason I did it was because I am going to close the card no matter what and it frees up the credit quicker if I ask for the CL reduction than if I close a card. However, now when I close the card won't it appear like a low limit card that was closed? I wonder if that would have any impact on future apps with other lenders. I have plenty of high credit line cards, but still it slightly bothers me the way it appears vs if I closed out a high credit line credit card.

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Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019

redpat · ‎02-10-2017

Why play games just close the card in the first place. The only thing that matters is that it's in good standing.

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR

kdm31091 · ‎02-10-2017

We only know so much about algorithims so nobody can tell you definitively whether it matters or not, but it will appear that you had a low limit card. When it updates as closed, it will show the new, reduced limit.

So not something I would do repeatedly, but occasionally, probably no big deal.

Anonymous · ‎02-10-2017

I'd just close it outright. It's more likely to show up on your report quicker that way as well vs the other way of it reporting at the next statement. If it's to free up the credit with the particular issuer, then it's all the same.

red259 · ‎02-10-2017

@redpat wrote:
Why play games just close the card in the first place. The only thing that matters is that it's in good standing.

Actually that is not possible. I should have made it clearer. I am applying for the same card to get the signup bonus again. If I close the card now it will reset the bonus signup clock for two years, so closing it first is not an option.

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019

red259 · ‎02-10-2017

@kdm31091 wrote:
We only know so much about algorithims so nobody can tell you definitively whether it matters or not, but it will appear that you had a low limit card. When it updates as closed, it will show the new, reduced limit.

So not something I would do repeatedly, but occasionally, probably no big deal.

They only let me reduce the limit to 4k so it won't appear to be that low of a limit in any event. Maybe I will just say screw it an app and see what happens. If I'm lucky they will pull credit from other cards to open it without me having to ask. Almost all my citi cards are going to get closed out this year anyway, since I'm not very pleased with the changes that have been made. Ill convert one to a Citi DC and SD it but that will likely be it.

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019

Anonymous · ‎02-10-2017

@red259 wrote:

Actually that is not possible. I should have made it clearer. I am applying for the same card to get the signup bonus again. If I close the card now it will reset the bonus signup clock for two years, so closing it first is not an option.

ahh that makes much more sense now.