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Lowering my credit line

Gunnerboy
Frequent Contributor

Re: Lowering my credit line


@jnbowmar wrote:

Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.

 

 


About a decade ago, BECU decreased my CL two times over a four month period.  After about six statements of on-time, larger than minimum payments, they reinstated my original limit.

 

Edit to add:

My BECU util was about 80% at that time, and I was making just minimum payments for probably four consecutive statements.



"Not everyone who helps you is a friend, and not everyone who challenges you is an enemy."
Message 11 of 14
Sketchdogg
Regular Contributor

Re: Lowering my credit line

Are you able to make more than minimum payments on the cards with high interest rates. This will help you with your utilization and also saves you money on the interest your paying on your balances. Work on decreasing your credit balances, dont chase your score or worry about the lowering of credit limit, since once your utilization decreases the same credit Co. will increase your balance again. As always your credit cards and scores are always a snapshot at that particular time.

Message 12 of 14
OmarGB9
Community Leader
Super Contributor

Re: Lowering my credit line


@Sketchdogg wrote:

Are you able to make more than minimum payments on the cards with high interest rates. This will help you with your utilization and also saves you money on the interest your paying on your balances. Work on decreasing your credit balances, dont chase your score or worry about the lowering of credit limit, since once your utilization decreases the same credit Co. will increase your balance again. As always your credit cards and scores are always a snapshot at that particular time.


I think you mean increase your limit again, right?


Last App: 04/05/2021
Penfed Signature Loan

Currently rebuilding as of 04/11/2019.

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Message 13 of 14
Creditmehappy
New Visitor

Re: Lowering my credit line

Jnbowmar is correct when telling you that just making the minimum payment is an option. I understand some people think it's absurd to pay so much interest for months to years, only to keep an initial credit line, or opportunity to keep an account open. However, my spouse did this and after a year or two it paid off. Once his scores rebounded, we paid the cards in question off and the balance chasing stopped. It saved his average age of accounts, and fast forward to now his scores are in the 800s. No longer worried about Synchrony Bank or any other! Just an option! If you have the extra money for interest, the patience, and you're not making any moves with your credit for a while. I recommend it! 

Message 14 of 14
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