Credit limit decreased my score

Anonymous · ‎03-19-2015

I got a $1000.00 credit limit increase on my Capital One Card two weeks ago. Today, the CLI was updated on my reports, and it brought my score down. I'll never understamd this. i thought it would increase some, not decrease.

Also, one more question. My walmart CC credit limit was decreased to $110.00 even though my credit has improved a lot since I even got the card 7 months ago. The balance is at $0 , I have nothing I need now @ walmart since they lowered the limit. What should I do? If I get anything it will just make the utilization go past %30 percent. Won't take much to max it out since the limit is $110.00 . Can I close the account? It's useless to me. If it will greatly impact my scores though, then I wont close it.

Anonymous · ‎03-20-2015

Congrats on the increase. The increase itself was not the reason for decrease in scores. There is something else behind the scenes that caused this. We will never know as FICO algorithm is secret. Make sure that there is nothing on your reports that is a new derogatory.
As for Walmart I would not close as you need at least 3 revolvers and an installment loan for optimum scoring. Why did they decrease your limit? Make sure all your cards report to 0 except one that reports 1 to 9 percent. Good luck!

gdale6 · ‎03-20-2015

@Anonymous wrote:
Congrats on the increase. The increase itself was not the reason for decrease in scores. There is something else behind the scenes that caused this. We will never know as FICO algorithm is secret. Make sure that there is nothing on your reports that is a new derogatory.
As for Walmart I would not close as you need at least 3 revolvers and an installment loan for optimum scoring. Why did they decrease your limit? Make sure all your cards report to 0 except one that reports 1 to 9 percent. Good luck!

3 bankcards and 1 store card is the recommended minimum, not an installment loan they do little for your Fico unless you default. Revolving credit is where the bulk of the action is when it comes to Fico scores.

Anonymous · ‎03-24-2015

If I canceled the Walmart card , then I would have 3 card. 1 cap one, 1 first premier, 1 speedway

DE2TX · ‎03-24-2015

@Anonymous wrote:
If I canceled the Walmart card , then I would have 3 card. 1 cap one, 1 first premier, 1 speedway

The WMT card is supposed to be a good card that will grow with you. Find out why they decreased it.

Anonymous · ‎03-24-2015

@Anonymous wrote:
I got a $1000.00 credit limit increase on my Capital One Card two weeks ago. Today, the CLI was updated on my reports, and it brought my score down. I'll never understamd this. i thought it would increase some, not decrease.

@Also, one more question. My walmart CC credit limit was decreased to $110.00 even though my credit has improved a lot since I even got the card 7 months ago. The balance is at $0 , I have nothing I need now @ walmart since they lowered the limit. What should I do? If I get anything it will just make the utilization go past %30 percent. Won't take much to max it out since the limit is $110.00 . Can I close the account? It's useless to me. If it will greatly impact my scores though, then I wont close it.

How often do you use the Walmart card? Perhaps the CL was decreased due to inactivity. You should also check your reports to make sure no baddies have crept back on.

Anonymous · ‎03-25-2015

@gdale6 wrote:
@Anonymous wrote:
Congrats on the increase. The increase itself was not the reason for decrease in scores. There is something else behind the scenes that caused this. We will never know as FICO algorithm is secret. Make sure that there is nothing on your reports that is a new derogatory.
As for Walmart I would not close as you need at least 3 revolvers and an installment loan for optimum scoring. Why did they decrease your limit? Make sure all your cards report to 0 except one that reports 1 to 9 percent. Good luck!
3 bankcards and 1 store card is the recommended minimum, not an installment loan they do little for your Fico unless you default. Revolving credit is where the bulk of the action is when it comes to Fico scores.

I am confused....installment loans have been preached to the forums with respect to opening a secured installment loan to help with the mix of credit that would enhance FICO scores. Please elaborate. Thanks!

Anonymous · ‎03-25-2015

I got an installment loan to add to my 3 cards reporting and it bumped my score 85 points...

lg8302ch · ‎03-25-2015

@Anonymous wrote:
@gdale6 wrote:
@Anonymous wrote:
Congrats on the increase. The increase itself was not the reason for decrease in scores. There is something else behind the scenes that caused this. We will never know as FICO algorithm is secret. Make sure that there is nothing on your reports that is a new derogatory.
As for Walmart I would not close as you need at least 3 revolvers and an installment loan for optimum scoring. Why did they decrease your limit? Make sure all your cards report to 0 except one that reports 1 to 9 percent. Good luck!
3 bankcards and 1 store card is the recommended minimum, not an installment loan they do little for your Fico unless you default. Revolving credit is where the bulk of the action is when it comes to Fico scores.
I am confused....installment loans have been preached to the forums with respect to opening a secured installment loan to help with the mix of credit that would enhance FICO scores. Please elaborate. Thanks!

Type of credit in use is only counted 10% in your score. I have only major CCs on my report and doubt it would make much difference if I would add an installment account. But it would certainly be interesting to see the result. If I will ever get into a CU then I might go for a secured installment loan to see what would happen. At the moment I have the feeling it would not do much for me.

Anonymous · ‎03-31-2015

Walmart said to me that there were 2 late payments that lowered the Credit limit, but I asked them "why were the late fees removed" makes no sense to me. If they reverese the "late payments" why lower the limit. I have a Cap One card with $1500.00 CL, First Premier $300 CL, SPEEDWAY $250 CL. The utilization of the cards comes to 5%

Am I doing the best choice on my Utilization?

I have installment loans because of my student loans.