{URGENT} Will lowering a credit limit hurt my credit score?

[mgx42]

OK so she should just go ahead And stick with the "It" card and allow them to close the old account? Then 6 months down the line apply for a new different card? If they allow it, should we see if we can just use the old account and upgrade the more card to the it card. If they refuse just go with what you were saying?

[Revelate]

---

@user5387 wrote:

In reading through this thread, it's still not clear to me whether you were given correct information at the outset, re needing to close the old card.

As mentioned, the typical switch from More to IT leaves the account intact.

If Discover made a mistake, or if there's some other angle where you can't preserve the account, it would be good to know about it before going further.

---

Guess I should've summarized, thank you user5387

Best outcome:

1) Reactivate More card, convert that to IT

2) Cancel new IT appliction 

Ask for it, plead ignorance and what you really wanted was to keep the old history on the More card but switch it to the IT one.  If you're going another around with Discover CS the worst they can do is say no, but if they're already willing to meet you halfway by reactivating the old card (this is the hard part) then shoot for the moon.

If the can't do that, fallback position is to just leave the More closed in my estimation and go on with life with the IT... and likely seeing about improving your credit portfolio elsewhere.

[Revelate]

---

@mgx42 wrote:
OK so she should just go ahead And stick with the "It" card and allow them to close the old account? Then 6 months down the line apply for a new different card? If they allow it, should we see if we can just use the old account and upgrade the more card to the it card. If they refuse just go with what you were saying?

---

That's perfect!

[mgx42]

OK thank you all for your advice. I'll update the thread after we talk to Discover.

[mgx42]

So I called Discover.  My girlfriend works night shift so she is sleeping at the moment.  I spoke to the supervisor that we talked to last night.  I asked if we could reopen the old account and just upgrade the more card to the It card without having to open a new account or split the limit between two cards.  He said yes!  So when my girlfriend wakes up we are going to have her call him again (since it's her account) and they will transfer her over to the "It" team who will then upgrade her old account.  The supervisor said he will just deny the new account application (the denial won't hurt her score right?).

[user5387]

If a CC application is turned down, there's no new tradeline or AAoA hit.

There may or may not be a hard pull, and if there is, then that will cost a bit.

[mgx42]

They already did the inquiry for the application, would they do another hard pull on top of that to just upgrade her card?

[user5387]

If all of this is a complex way of switching from More to IT, there should be no hard pulls involved, and you might wish to ask about this angle.

[mgx42]

He said that "I can deny the application she filed but the inquiry would still be there".  I asked "its just the one inquiry right?".  He said "yes".  I will  have my girlfriend ask that information again when she calls him.  Just so I know how many points does a hard inquiry deduct from your score?

[Revelate]

---

@mgx42 wrote:

He said that "I can deny the application she filed but the inquiry would still be there".  I asked "its just the one inquiry right?".  He said "yes".  I will  have my girlfriend ask that information again when she calls him.  Just so I know how many points does a hard inquiry deduct from your score?

---

Depends on your current file and your score, but they're minor and possibly if you have inquiries on there already it will be zero impact.  Diminishing returns on derogatories and inquiries are graded on a step function.

Inquiries are trivial honestly: fact is, this is the best possible outcome you could achieve given what's happened: don't sweat the small details, your girlfriend is coming out ahead on this one and you can thank Discover for being willing to work with you much in this instance.  Take the money and run so to speak .