topic Re: Does a suddenly reduced credit card limit impact credit score in Credit Cards

Does a suddenly reduced credit card limit impact credit score

Anonymous — Sat, 21 May 2011 19:57:28 GMT

Hi everyone,

I moved into US around 4.5 years back and opened a couple of credit cards with the following limits

Affinity initial $1000 and then upgraded it to $25,000 2 years back

BOA $500

normally i spend around $1000 monthly on both cards and pay them off or pay half it but on an average i might have $500 on both cards combined.

Now all of a sudden Affinity chose to reduce my limit to 2500$ , how does this impact my credit score.Of course i can stop or reduce my usage of credit cards to the less than 10 % level (which is it is now) by not using the credit cards much. Am still trying to talk through with affinity to solve this. can someone please advise what i can do to not have a sudden or reduce the negative impact on my score . Do we even know how much it will hit my score, my score is currently above 740.

Does it make sense to apply for two-three new cards just to offset this reduction , Please let me know ur thoughts on this one.

thanks

shan

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sat, 21 May 2011 22:04:35 GMT

@Anonymous wrote:
Hi everyone,

I moved into US around 4.5 years back and opened a couple of credit cards with the following limits

Affinity initial $1000 and then upgraded it to $25,000 2 years back
BOA $500

normally i spend around $1000 monthly on both cards and pay them off or pay half it but on an average i might have $500 on both cards combined.

Now all of a sudden Affinity chose to reduce my limit to 2500$ , how does this impact my credit score.Of course i can stop or reduce my usage of credit cards to the less than 10 % level (which is it is now) by not using the credit cards much. Am still trying to talk through with affinity to solve this. can someone please advise what i can do to not have a sudden or reduce the negative impact on my score . Do we even know how much it will hit my score, my score is currently above 740.

Does it make sense to apply for two-three new cards just to offset this reduction , Please let me know ur thoughts on this one.

thanks
shan

Your score will only be affected by a change of utilization. But you are handling that, it should not change much. I would not add new cards as that will lower your score, via AAofA and inquiries.

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sat, 21 May 2011 22:22:06 GMT

@Anonymous wrote:
Your score will only be affected by a change of utilization. But you are handling that, it should not change much. I would not add new cards as that will lower your score, via AAofA and inquiries.

Hi newkid,

Welcome! Glad you're posting here!!

I agree with Wolf3. CL's do not impact your FICO - utilization does. As long as you watch your reported balances, your FICO should be stable. On another note, a reported balance of zero on all but one card, with the remaining one card reporting less than 9% utilization, will likely improve your FICO score.

I would consider app'ing for a new card, though. Putting $1,000 through a $2,500 card each month is absolutely fine - but it may be easier to manage a larger CL card. Your FICO is high enough to make you elible for some great cards, and your BofA at $500 CL isn't of much help to you.

Lastly, a question - do you know if your score is a FICO? It is if you pulled it from this site - otherwise it may not be. Always good to know when you're thinking of looking at new cards.

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sun, 22 May 2011 02:29:06 GMT

Thanks everyne for ur help ....

I ran the credit score from free credit report site giving all three CRA's.- showed all three as more than 740.(But again even with this score i have been refused appartments for rent citing i have less than 3 years history some time back).

I will also try to probably get another card to have a higher CL anyway just to have myself covered as recommended......

thanks

new kid83

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sun, 22 May 2011 06:48:41 GMT

@Anonymous wrote:
Thanks everyne for ur help ....

I ran the credit score from free credit report site giving all three CRA's.- showed all three as more than 740.(But again even with this score i have been refused appartments for rent citing i have less than 3 years history some time back).

I will also try to probably get another card to have a higher CL anyway just to have myself covered as recommended......

thanks
new kid83

That is not a FICO score ... that is a FAKO score ... so, your real FICO score could be around 700 or lower.

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sun, 22 May 2011 06:51:26 GMT

@Anonymous wrote:
Thanks everyne for ur help ....

I ran the credit score from free credit report site giving all three CRA's.- showed all three as more than 740.(But again even with this score i have been refused appartments for rent citing i have less than 3 years history some time back).

I will also try to probably get another card to have a higher CL anyway just to have myself covered as recommended......

thanks
new kid83

That's a FAKO not FICO. Your FICO score could be around 700 or lower ~

Re: Does a suddenly reduced credit card limit impact credit score

score_building — Sun, 22 May 2011 09:19:41 GMT

Is this AFCU? A CLI from 1 to 25k at AFCU seems unusual, so too such a drastic CLD, did they give you a reason for the change?

Whatever led to the CLD may have a neg impact on future app(s) if not resolved in advance.

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sun, 22 May 2011 10:07:26 GMT

@Anonymous wrote:
@Anonymous wrote:
Thanks everyne for ur help ....

I ran the credit score from free credit report site giving all three CRA's.- showed all three as more than 740.(But again even with this score i have been refused appartments for rent citing i have less than 3 years history some time back).

I will also try to probably get another card to have a higher CL anyway just to have myself covered as recommended......

thanks
new kid83

That's a FAKO not FICO. Your FICO score could be around 700 or lower ~

Or his FICO could be 800 or higher.

My FAKO on TU is 737. My FICO is 785.

There is no correlation at all.

Re: Does a suddenly reduced credit card limit impact credit score

Anonymous — Sun, 22 May 2011 10:43:06 GMT

not bad wasnt that different - just ran one on this site gave me FICO 730....

yes AFCU is Affinity Credit union - I am also trying to sort it out not yet resolved ..

thanks

shan