CLD Question

[Anonymous]

I know this goes against the grain, but should I decrease some of my store card limits? Most of my store cards have 4000- 6000 in available credit/ zero balance. Thing is I'd like to work on getting or improving my mc and visas and I think such high limits are interfering. Credit lines exceed income by over half. I figured if I reduced to 20k my utitilization would still be under 30. Thanks 

[Anonymous]

No, don't decrease it if the goal is to improve MCs and VISAs.  Clarify for me a bit.  When you say "improving MCs and VISAs, do you mean increasing credit limits"? If so, then the thought of decreasing limits won't help you.

Why?  Because your limit for a new card is determine by your current credit limits on other card thus, whether it is a store card or not. Lenders like to see how applicants handle different limits when approving new credits or even give a CLI.

Another thing is if you reduce the limits and it shows on your report, how do new lenders or even existing ones know you were the one you asked for the decrease? They might think an adverse action was taken against you.  But of course, it is up to you what you do since it is your credit profile.

[takeshi74]

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@Anonymous wrote:

I know this goes against the grain, but should I decrease some of my store card limits? Most of my store cards have 4000- 6000 in available credit/ zero balance. Thing is I'd like to work on getting or improving my mc and visas and I think such high limits are interfering.

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You might want to consider it if available credit is cited as a denial reason.  Don't just assume.

Even if it is, I'd suggest then looking at your reports, idenitifying deficienies and working on addressing them rather than decreasing limits.  Your credit profile and income determine the amounts of credit that you will qualify for. If available credit is cited it's actually "available credit for your profile" (just as with any denial reason).  Improving your profile will help with what creditors are willing to extend to you.

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@Anonymous wrote:

Credit lines exceed income by over half. I figured if I reduced to 20k my utitilization would still be under 30.

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You can't just rely on that. It is possible to have multiples of one's income if one's credit profile supports it. I'm roughly at 2x. There are those who are higher.

[Anonymous]

Thank you for replying... I guess my question would be whether I've capped out the credit I can get verses income. I have about 30k in store credit I don't plan on using. Ihave two mc and a discover. They won't give me increases on and I'm worried it's because I have too much in available store credit.

[takeshi74]

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@Anonymous wrote:

I have about 30k in store credit I don't plan on using.

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Those you may want to consider closing out then.

[Anonymous]

I'm at 2x and income is cited. I do have a ton of available credit.

[Anonymous]

I really don't want to close them, maybe just reduce them to a thousand. If I use them it's only for 20 to 50 dollars and I pay it off as soon as it post.

[Anonymous]

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@Anonymous wrote:

I really don't want to close them, maybe just reduce them to a thousand. If I use them it's only for 20 to 50 dollars and I pay it off as soon as it post.

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Are you earning any rewards on these store cards?

[Anonymous]

Not really, that's why I'd like to build up my QuickSilver or discover. 

[Anonymous]

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@Anonymous wrote:

Not really, that's why I'd like to build up my QuickSilver or discover. 

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If it were me, and with little spend and little/no rewards, I would jut close them before reducing the limit.