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I have a couple department store cards as well as AMEX and MC. My credit scores have been excellent for several years. When Costco dropped AMEX and went to VISA, I picked up a VISA card. It came with a $25,000 limit - and dropped my credit score about 30 points. My score is still excellent but I will never use more than a few thoussand on this card. Should I have the bank lower the rate to reduce my "available credit" and get my ratio closer to whatever it had been?
The limit on the card has no bearing on a score drop. The drop you experienced was likely due to the credit inquiry in obtaining it, the reduction of your AAoA and the "new account" which lowers your AoYA to 0. Whatever points are lost from these factors are gained back quickly, so long as you don't apply for additional credit. Most people depending on their profile see their scores return to where they were within 6 months after apping.
When you say you picked up a Visa card, which card in particular was it?
There's no harm in having a major bank card with a substantial limit. In fact, a strong limit can help your overall credit utilization which can aid in keeping your scores more grounded during times where you may carry a CC balance or two. I'd say keep the $25k limit; your scores/profile obviously supports it or you wouldn't have been handed such a nice SL.
Thanks for the information. The Visa was through USAA.
Was this a FICO score or Vantage from like Credit Karma or similar?
This was not FICO but Experian - although the FICO also dropped a bit.
Very similar, I run low balances.
@Anonymous wrote:I have a couple department store cards as well as AMEX and MC. My credit scores have been excellent for several years. When Costco dropped AMEX and went to VISA, I picked up a VISA card. It came with a $25,000 limit - and dropped my credit score about 30 points. My score is still excellent but I will never use more than a few thoussand on this card. Should I have the bank lower the rate to reduce my "available credit" and get my ratio closer to whatever it had been?
Something else dropped your score 30 points. Getting a new Visa card with a $25k limit would not hurt your credit scores.