The lower limit shouldn't impact you unless you're carrying a balance which will bump you up into the next tier (i.e. say your utilization was at 6.8% and with the limit reduction you're now at 35%).
@broadnms wrote:Good morning everyone.
So in the lovely month of December, I have been hit with two financial whammies:
1) I have (had) a credit builder loan through SeedFi, and they have decided to transfer their customers' contracts to a portfolio management company called SST. This is turning into a major problem, but that's a discussion for another thread.
2) I have a digital credit card with a company called Grain Technology. I received a notice last night that their lending banking partner has decided to lower everyone's credit limit. They are citing economic factors for their reason.
I have been working very hard in the past 12 months to boost my credit score, and I am extremely concerned as to how these recent changes will affect my credit score. I JUST got to 605-620 three days ago, and was extremely proud of my hard work. But now I feel like it's gone to waste. Is anyone able to provide any insight as to what I can expect when 1)a company transfers an open/Paid as agreed account to another financial entity and 2)when a company decides to lower the credit limits for their customers?
Thank you in advance.
1. I don't think the transfer of a loan from one entity to another should cause a problem. I suppose it's possible that it could erroneously be treated as a new loan, which might ding you slightly, or not at all, depending on your profile.
2. Grain Technology sounds like a commercial account; is it? If so, maybe it doesn't report to your personal credit at all. If it does report to personal credit, the reduction of the credit limit could affect your scores if your utilization is already high, but if your utilization is low it shouldn't. I would need to know your numbers to tell if the effect would be slight or more substantial.
