Getting credit limit decreased?

[ebokee]

Would it benefit me to get my credit limit decreased on a few cards before applying for a mortgage? Lenders calculate the minimum amount due regardless if the cards are paid down to 0 anyway right? For example my Macy's card has been at $100 limit for years.....I got a $1500 increase in December so my minimum amount due each month has increased. Same situation with my Merrick Bank cards. Advice appreciated.

[RobertEG]

Minimum monthly payment will never be greater than your current account balance.

If you do carry a balance and your CL is reduced, your % util will be increased.

No, I would not request a CL decrease.

[ebokee]

So you are saying that if I pay my cards down to 0 balance before applying lenders won't include the minimun amount due since there is no longer a balance?

[gdale6]

---

@ebokee wrote:

So you are saying that if I pay my cards down to 0 balance before applying lenders won't include the minimun amount due since there is no longer a balance?

---

You would not want to have all your CCs reporting a 0 balance that scores as if you were using 30% of your avail credit, you want all at 0 except for 1 card that reports 1-9% of its individual CL to the CRAs. Creditors dont add up all your minimum payments they typically go on what you are actually using at that time, I would not ask for a CLD at all and let the mortgage people decide if you need to reduce some available credit (dont even suggest it to them).

[TURNERHOOVER]

---

@ebokee wrote:

Would it benefit me to get my credit limit decreased on a few cards before applying for a mortgage? Lenders calculate the minimum amount due regardless if the cards are paid down to 0 anyway right? For example my Macy's card has been at $100 limit for years.....I got a $1500 increase in December so my minimum amount due each month has increased. Same situation with my Merrick Bank cards. Advice appreciated.

---

Maybe cancel a trade line or two you don't use anymore.

[ebokee]

^I am applying later this year. I thought it was considered a bad thing for credit scores to cancel old accounts. I am certainly not using anymore cards. These will be paid off by the time I apply.

[StartingOver10]

---

@ebokee wrote:

^I am applying later this year. I thought it was considered a bad thing for credit scores to cancel old accounts. I am certainly not using anymore cards. These will be paid off by the time I apply.

---

Don't reduce credit limits.

DON'T CANCEL ANY TRADELINES.

Pay off all of your credit cards except one and it should have a very small balance of 1% to 9% of the credit limit of that card. If you do this, you will optimize your score.

The mortgage co will only use the actual minimum payment due for outstanding credit balances to calculate your DTI.

[ebokee]

^ Thanks StartingOver10. You surely know your stuff