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Any benefit to reducing total limits?

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SouthJamaica
Mega Contributor

Any benefit to reducing total limits?

Now that I have "enough" available credit, I would still like to convert some of the credit which is less useful to me into the kind of credit I find more useful, namely credit union platinum non-rewards cards, and personal lines of credit.

 

Will I benefit from preemptively closing or reducing limits on the less useful accounts?


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

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Anonymous
Not applicable

Re: Any benefit to reducing total limits?

It could if your current total limits/exposure coud potentially be the constraint to approval/growth of the products that you desire.  Whether or not that is the case would no doubt be lender-specific and almost impossible to determine under most circumstances.

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NRB525
Super Contributor

Re: Any benefit to reducing total limits?

You may benefit by reducing total limits with a bank / CU when you intend to app other cards, but even that is bank-specific.

Your FICO score will not be affected unless aggregate utilization is affected.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
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