Voluntarily decreasing CL for Capital One

[Gollum]

The only reason I don't close my Capital One credit card is because it's my oldest (eighteen years, I think) credit card of the three credit cards I have.  I use it twice a year just to keep it active.  I think my second-oldest credit card (Simmons Bank) is seven years or so, and my third-oldest and newest credit card (American Express) is a little less than two years.

I'm thinking about applying for the NFCU cashRewards credit card later this year and voluntarily decreasing my Capital One credit limit and my American Express credit limit to keep my total credit card available credit about the same as it is now, and sorta replacing my Capital One card with an NFCU card.  My current total available credit seems to work OK with my FICO score (currently 839).

My current limits are Capital One $10,500, Simmons $7500, and American Express $10,500.  Assuming I get approved for an NFCU card at the limit I want, I'm thinking about these limits: Capital One $5000, Simmons $7500, American Express $7500, and NFCU $7500.

If I remember right, $5000 used to be the lowest limit for banks' best credit cards.  I have been thinking a $5000 limit shows that a bank trusts me, but I think I can let go of that idea.  My Capital One card is a VISA Platinum No Hassle Rewards card, and years ago I asked Capital One to stop offering product changes or credit limit increases.

Is there any practical reason to not voluntarily lower my Capital One limit to less than $5000?

I'd use the American Express card for groceries and gasoline, split other spending between the Simmons card and the NFCU card, and (still) only use the Capital One card twice a year.

[ToughFistFight]

I can't think of one. If that's how you like to handle your credit, you do you!

[Anonymous]

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@Gollumwrote:

Is there any practical reason to not voluntarily lower my Capital One limit to less than $5000?

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Is there a practical reason to voluntarily lower the limit?  You didn't really state a reason why you want to.  Either way is up to you... if you don't need the existing limit, there's no harm in reducing it.  But there's no harm in keeping it either, unless you think you'll be tempted to overspend if you keep it.

Maybe if you're only keeping the account because of its age and you're sock-drawering the card (only using it for a small purchase occasionally to keep it active), you could lower its limit to something like $500 so if any fraud occurs the damage will be limited.

You have other high-limit cards, so there's no real harm in lowering it if it doesn't make your utilization go too high.

[Kforce]

I think it would be cool to have them all at $7500.

[Gregory1776]

Not sure what’s the point of lowering your limits..... what’s the point of keeping your total credit available where it is now? 🤔🤔

[Anonymous]

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@Gregory1776wrote:

Not sure what’s the point of lowering your limits..... what’s the point of keeping your total credit available where it is now? 🤔🤔

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I'm curious about this also.

[Meanmchine]

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@Gregory1776wrote:

Not sure what’s the point of lowering your limits..... what’s the point of keeping your total credit available where it is now? 🤔🤔

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/agree

[601flyguy]

Same here, I say keep doing what you've been doing.

[Anonymous]

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@Meanmchinewrote:

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@Gregory1776wrote:

Not sure what’s the point of lowering your limits..... what’s the point of keeping your total credit available where it is now? 🤔🤔

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/agree

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Or equally (blasphemy though it may seem to many) the equivalent question for almost everyone else:  "If your limits work for you now, why continually try to increase them?"

[Gregory1776]

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@Anonymouswrote:

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@Meanmchinewrote:

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@Gregory1776wrote:

Not sure what’s the point of lowering your limits..... what’s the point of keeping your total credit available where it is now? 🤔🤔

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/agree

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Or equally (blasphemy though it may seem to many) the equivalent question for almost everyone else:  "If your limits work for you now, why continually try to increase them?"

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Reducing utilization, increasing the sense of being able to use high credit lines to lenders/or getting larger SL’s....🤔🙂