I have extremely high debt on my credit cards, so my score has sank into the low 600s. I had a plan to pay oftttttttredit card within two years and then everything would be fine, but then someone lost control of his car (while messing with his cell phone) hit me head on... totalled my car and broke my ankel. So, needless to say, I need to get a car loan and a home equity loan to pay off my debt.
Anyway, I paid off two of my credit cards in hopes of increasing my credit score a bit before I went in for the loan next week. Everything went fine with one of my creditors. They have already reported the balance as paid off. However, Citi quickly decreased my credit from $5400 to $2000 the moment I have them my money. I've been off work dealing with this broken ankel and have only been able to make minimum payments for a while, so I understand. But they just hit me at the wrong time.
My question is... will this affect me negatively as far as my credit score. Citi had been at about 98% usage. But now, even though my credit has been lowered I only have 25% usage on that card. So, I'm wondering if my overall credit limited went from 80,000 to 77,000, but the usage now 2% to 3% lower. Will I be hurt by what Citi did, or will I still receive a slight bump in my credit score?
Has this every happened to anyone? Need to know if I should rush to my credit union on Monday or just wait until Wednesday when the new Citi balance hits my account.
Thanks for any help you're able to provide.
Starting Score: 689
@NCGirl wrote:I have extremely high debt on my credit cards, so my score has sank into the low 600s. I had a plan to pay oftttttttredit card within two years and then everything would be fine, but then someone lost control of his car (while messing with his cell phone) hit me head on... totalled my car and broke my ankel. So, needless to say, I need to get a car loan and a home equity loan to pay off my debt.
Anyway, I paid off two of my credit cards in hopes of increasing my credit score a bit before I went in for the loan next week. Everything went fine with one of my creditors. They have already reported the balance as paid off. However, Citi quickly decreased my credit from $5400 to $2000 the moment I have them my money. I've been off work dealing with this broken ankel and have only been able to make minimum payments for a while, so I understand. But they just hit me at the wrong time.
My question is... will this affect me negatively as far as my credit score. Citi had been at about 98% usage. But now, even though my credit has been lowered I only have 25% usage on that card. So, I'm wondering if my overall credit limited went from 80,000 to 77,000, but the usage now 2% to 3% lower. Will I be hurt by what Citi did, or will I still receive a slight bump in my credit score?
Has this every happened to anyone? Need to know if I should rush to my credit union on Monday or just wait until Wednesday when the new Citi balance hits my account.
Thanks for any help you're able to provide.
Even though Citi cut the limit you will see points gained on that individual card as its now below the maxed out line which is 90% of a cards CL. I would call Citi and see aboout getting that line restored. As far as overall util it would depend on the total percentage as to whether or not the loss of its CL will cause a point loss or not. I would just be straight up with your CU on this and most likely they will be willing to work with you.
