Credit Limit

[Anonymous]

Is it possible that my credit card company will lower my credit limit? I have 10,000 credit limit and every month I have a balance of 50 so not even 1% dept to credit ratio in other word I use it for a very small amount only and I'm doing it for 5 months already. Thanks

[Anonymous]

Anything is possible, many card companies are reducing credit limits because "you arent using much of your available limit".  If you can tell us who your credit card is through we can tell you how likely it is you might see your limit drop.

[haulingthescoreup]

And alternatively, they can lower it because they feel you're using too much of your limit!

Banks are having to reduce the amount of extended credit on their books, so they're doing CLD's with amazingly random reasons.

[Anonymous]

Thanks right now its wamu but on march it will become chase. on the bad side if they lower my credit limit I have a high balance of 7,000 so if they drop it to 5,000 or something it will look like I over the limit is it correct?

[Anonymous]

Yeah, but underwriters understand what happened, your not going to go 2K over the limit and still have the account open =P  I dont know if chase will CLD you, you might see an APR jump though.

[Anonymous]

thanks a lot, I'm planning to close it before they lower my limit coz I don't want to have that situation.

[Anonymous]

Woah now I wouldnt do that!  Your not going to sell your car because it might break down are ya?  Were in bad times right now and no one is immune from AA for no apparant reason, but the times will change and I think many will get there limits back..  might be a few years though!

[cobaltnv]

How is closing your account better than the potential for a CLD?  I would not close out the account without a very good reason--and IMO the possibility of a CLD is not a good reason.

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@Anonymous wrote:
thanks a lot, I'm planning to close it before they lower my limit coz I don't want to have that situation.

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[Anonymous]

Thaks.. but what are the negative effect if i close that account besides my dept to credit ratio will not be affected

because I dont have any dept to my other credit cards? Thanks a lot really help

[cobaltnv]

I am going to assume that there are other reasons you want to close this account. Is there some reason you want to close this account (other than the potential for a CLD)?

If you do not have credit card debt then a CLD is not going to hurt you credit score (or debt to credit ratio). Before closing a credit card be sure you read the first post in "closing credit cards". The thread may be found in the commonly requested threads post at the top of the main page.

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@Anonymous wrote:

Thaks.. but what are the negative effect if i close that account besides my dept to credit ratio will not be affected

because I dont have any dept to my other credit cards? Thanks a lot really help

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