I've recently put myself on a "financial diet" and I'm aggressively paying off the debt I have in order to (possibly) buy a condo next year. I use my credit cards a lot for every day use, but I'd like to switch to my debit card because I think that will help my overall mindset.
Now my question is, will creditors decrease my credit lines because of my lack of usage? I'm primarily worried about Amex and Discover. I do also have Citi, which is a $13.5K limit, and have heard all of the stories of those who have had their accounts closed, but they raised my CL last year and are regularly sending me BT offers, so I don't think this is in the near future (but I'm not dillusional to think they'll stick it to me).
Is there anything I can do to prevent them from closing or decreasing CL b/c of my own mission to do better financially?
AMEX thinks that way, but if it causes you to spend more than you are able to PIF each month, then who cares!
I use my CCs for most of my purchases every month. I only use my debit card for certain situations (like when the cards I have are about to hit their statement date). The protection laws regarding CCs are much better than debit cards and if your identity becomes compromised you have better recourse. If they get a hold of your debit card you are essentially screwed if they drain your account. CCs usually have 0% liability against fraudulent use and I think the banks watch them much more closely. You just have to be more diligent with paying CCs off every month and not look at them being like free money. If you know that when you use it, you have to pay it back soon.
Congrats though on taking the initiative to be debt free. I have to say it's a wonderful feeling.