Just throwing this out here not saying it applies to you or not, but historically lenders look at big limits before small ones.
Cap 1 went around slashing people above ~25k a few years back; my spend wasn't any more than those that got whacked but I had voluntarily reduced my limit previously.
As others have stated CLD's can come at awkward times. Most consumers don't have outsized limits, I am an outlier even at ~230k let alone some people whose limits dwarf mine on this forum.
End of the day the more you have the more of an outlier you are and when the algorithms go hunting in the Matrix, outliers get flagged.
I don't lose sleep over this but it's something to consider.
@Gollum wrote:
@brother7 wrote:Under what circumstances would it make sense to request a credit line decrease? [1]
Is there such thing [2] as having too much available revolving credit? If so, what is the guideline [3] to determine if one should reduce the amount of available revolving credit?
[1](a) "Too much available credit" denial reason for some lenders.
(b) A credit card that you don't like but want to keep anyway, at least for a while.
[2] Yes, there is such a thing as too much available revolving credit. I know that in the past, it has been mentioned in this forum as a denial reason for Simmons Bank, and I think for PenFed (Pentagon Federal Credit Union), too. It would not surprise me to learn that there are others that have not been mentioned (yet?) in this forum.
[3] For me, if the existing credit limit might cause denial of new credit that I would prefer instead.
I am considering reducing my Macy's $20K limit to $5K for two reasons: (1) I havent spent more than $1K a year on it in 3 years. And (2) When I asked for a SP CLI on CitiCostco and CitiDC, the decline reason was because I have reached my maximum amount with Citi (yep, Macy's is a Citi card). 
Requesting CLDs can be 1. For a mortgage application... 2. OCD on the limit.... 3. Freeing up that pesky DTI.... one case iv seen is people with high limit store cards.... when lowering the CLs on the store cards opens them up to CLIs on non-store cards.. 4.. Reducing your risk across other cards/products from the same lender... Some do this automatically but others.. it sometimes can be better to do it yourself to get approved for an additional product or approved for a CLI on a product from the same vendor....
Im very tempted to do this with Miss Disco because i kinda want a second card..another year of rewards.. being able to use it and BT shuffle... etc...
-J
Confused, how does reducing CL's prep for a mortgage or reduce DTI?
CL's aren't factored into the second, and the GSE's don't care so nobody else does.
@CreditInspired wrote:I wonder if an UW feels one is over extended if he/she has a humongous amount of available credit and feel uncomfortable extending a mortgage unless it's reduced. Or is this just a myth. IDK, just wondering out loud.
Definitely a myth. @CreditInspired
My 18 now 19 yr old nephew had $100k in revolving credit lines reporting when he bought his home.
Navy Fed and Regions bank both approved him for the mortgage without blinking.
Loan officer was aware he had a couple of AU accounts. But told him, his credit/ scores look so good. That she was going to push the loan through.
His mortgage scores were in the 800 range.
This was one of them, from his CR.
