Couple of basic credit questions

[Anonymous]

i have a good credit score 3 months ago it was 788 and then i put 7500 on a credit card with 11000 max and my credit score dropped to 747 and im trying to get it back up.  I currently have 2 credit cards the one i meantioned above which i just paid off and another that has a 25000 max that had 6000 on it which i also just recently paid off.  I currently have no debt in my CC's but i just bought a car and got a loan for 26000.  I went to cancel my card with the 11000 max but the guy on the phone told me since i have a 3 year perfect record its better if i keep the card and lower the max down to 5000 cause that will help my credit score.  Is this true? and if it is should i lower the 25000 max down also?  I rarely use my credit card so should i leave a small % on one of them all the time to help my credit? any help would be appreciated. thanks

[AndySoCal]

No to both questions. I would not close the account or lower the max ( credit limit) A long credit history is beneficial to your score. Keep in mind the car loan will lower the score temporarily (new account / new credit) butit will return. The low or no balances on the credit cards will help raise the score. I have a card that I have had and used for 18 years. Each time I check my credit that is a positive factor in my score.

[Anonymous]

Unfortunately they already lowered my chase card to 5000 max and i called them and they told me i cant raise it back for 6 months.  I rarely use it so thats no big deal.  Hopefully that wont affect my credit score cause the last statement balance on that card was 6000+ that i paid off last week and this statement shows my max limit only at 5000.  So hopefully they dont think i went over my limit.  Also I was wondering If paying my 2 cards off that i mentioned before will raise my score a good amount if at all and how long it will take to show. thanks

Message Edited by mxrider131 on 10-07-2009 08:43 PM

[AndySoCal]

Credit score wise you do not want it to report showing over the limit. I would make sure payment posts before the statment period is over.

[RobertEG]

Unless you are now in the credit application process, dont give it a moment of real concern.

You now know that they have reduced your CL on that one card,  Not good, but you must deal with it.  % util has no monthly memory, and is one of the few parts of your credit score over which you have total control.

It will, of course, increase your overall % util for the month, but it is not a derog.  

Get overall % util back under 10%, with all cards under 10%, and more than half your cards reporting no balances, and your % util part of your score will return to gold.

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