OP, as TT outlines, your limits are in a fairly good place, but the utilization on those cards matters.
What are the limits on each card, and what was the last statement balance for each card? What month and year did you get each card?
If anything, I would guess your score is “hurt” by not having enough credit limit.
Where are your scores from?
What are the limits on each card, and what was the last statement balance for each card? What month and year did you get each card?
If anything, I would guess your score is “hurt” by not having enough credit limit.
Where are your scores from?
Welcome @Anonymous. All who have posted before me have given great answers, and the right answers imo. I would keep yuou limits where they are. You are not taking a hit for having them. One last thing I will add, for the sake of making a different conversation point, is that you keep hearing people being concerned about a possible recession or Credit Card lenders "may" start slicing limits again down the road. My thought is if that time would come and they wanted to cut down your limits, you having these higher limits "may" keep them from slicing your limit to a lower number then they maybe they would've. I have no data to back that up, and am only saying this out of what I think could be possible. Certainly, the limit you have may not make a difference at all in that situation. Just throwing the thought out there.
@Anonymous wrote:
@RonM21 wrote:One last thing I will add, for the sake of making a different conversation point, is that you keep hearing people being concerned about a possible recession or Credit Card lenders "may" start slicing limits again down the road. My thought is if that time would come and they wanted to cut down your limits, you having these higher limits "may" keep them from slicing your limit to a lower number then they maybe they would've. I have no data to back that up, and am only saying this out of what I think could be possible. Certainly, the limit you have may not make a difference at all in that situation. Just throwing the thought out there.
Mmmm, not sure! A few of us had recent CLDs from Cap One, and they certainly focussed on (under-utilized) higher CLs, cutting mine from $35K to $10K (and then closing a $20K card for non-use). So at least for that issuer at that point, higher CLs had some increased risk.
Now you might be right if they started doing it more widely: e.g. a $35K being cut to $10K, but a $15K cut to $5K so you are better off starting high, but I think always the higher CLs are going to be first targets.
I think you're right that higher CL's will be targets but it's super cheap and easy to calculate consumer metrics with a given card vs. the CL of that tradeline, and that's probably some flavor of the metric: usage vs. CL.
I'm not entirely certain how credit card limits factor into a bank's reserve requirements though I'm pretty certain they do at least by some fractional exposure to risk, but if they factor literally at all, if the bank is tightening to meet regulations, expect outsized CL's to get whacked. I voluntarily CLD'd my Cap 1 card to 10k some time ago and since I haven't been reading the CC forum that often as of late I wasn't even aware that there were some lender-triggered reductions. If I had left it at it's prior limit quite possibly would've been cut, basically it's my card for expenses I don't want Chase to know about and that doesn't add up to that much spending.
