Question : Should I call the Credit card company to reduce my credit limit?
After several years of CC debt I finally made it a point in 07' to pay them off. So I wrote a $12,584.63 check (that hurt) to Visa to clear the remaining balance. The limit on this Visa was $16,000.00. Two weeks after the check was sent and applied to my account I received a letter from Visa stating ‘congratulations we have raised your credit limit to $23,000.00'. I don't want/need that much credit and I am not sure if by keeping that limit helps or hurts my credit score or if I need to ever to apply for credit somewhere else if that will raise a red flag. Any adive of suggestions?
- asked by Indy_man
All Answers:
Answer #1
The credit limit isn't the problem, you have tolearn NOT to spend money on stuff that is notabsolutely necessary.
- answered by pathfinder
Answer #2
Tell them not to raise it because when you applyfor a loan they look not only at how muchoutstanding debt you have, but how much availablecredit debt you could go into if you maxed out allyour lines. Increases the rates you get on loans
- answered by Jon Boy
Answer #3
I think you should just leave it alone, if youneed it then use it. If you don't, then don't. Idon't think it will hurt your credit score anyhow.
- answered by becky m
Answer #4
Remember that so long as you've been issued with acredit card, whatever the limit is your creditscore will be effected. My suggestion is since ittook that long to finally get yourself debt free,stay away from credit card whereever possible. Having the card would mean temptation to spentmore. Cancel the card. From now onwards pay cashfor your purchases. No cash means no purchases assimple as that and that's the way to keep yourselfdebt-free. Congratulations!
- answered by SG Elite
Answer #5
Most people ignore their credit limit unless theyneed to make a large emergency purchase. - Ignoreyour credit limit and learn to budget. Figure outhow much money you can afford to pay your creditcard company each month, and try to spend lessthan that.
- answered by Betty
Answer #6
A credit card is made out of plastic with 3dimmensions : High, width and Debt !!!Try to livewithout a credit card !It will be difficult forthe 1st 2 months, after that, once you have paidyour DEBT off, you will be able to pay everythingCASH - what a pleasure - credit cards are made bybanks, shops and ONLY TO FORCE TO BUY AND SPEND!!!!don't allow them to dictate you, what to dowith YOUR monney ! They (banks and shops) aremercyless when you dont pay what is due to them !!be mercyless to them - don't GIVE your money tothem.
- answered by bordasimus
Answer #7
Oh wow I wish my card was like that! I think youshould reduce it because if you try to get alonethey will consider all the credit you haveavailable and not give you a big loan but if youdon't want to be in debt I would definately sayreduce it because you don't any more debt right
- answered by S S
Answer #8
Hi lower your credit the bank are only sendingthis letter out to you so they can get you to useyour credit card more , you have to stop and thinkif you lost your card or it was stolen the personwho gets hold of it can forge your signature anduse your credit to this amount if you lower youcredit to a resonable amount then you can only beripped of for a minimal ammount
- answered by Libby C
Answer #9
no.. having a higher credit limit is better foryour credit score. Just learn to have some willpower and spend up to your limits.
- answered by iceman
Answer #10
If you have a zero balance, why not just close itout? Yes this will raise a flag because now thatyou have a 23,000.00 limit, it will look like thehighest balance on that card was 23,000.00. Italso depends on you debt to income ratio.
- answered by nuttybuddy
Answer #11
Yes. Call and have it reduced to $5000. Andcongratulations on paying off that huge debt! Ifyou had only paid minimum payments, you'd beindebted to them for life!The reason you want itreduced is akin to why alcoholics know that evenone drink can set them back. You do not want, orneed, to be seduced into that kind of bondageagain. $5000 should be enough for an emergency.Small purchases and gifts can be handled withcash. If faced with an emergency requiringthousands of dollars, then your credit score willallow you to deal with it at that time.If thecompany does not reduce your limit within the nexttwo weeks, cancel the card. No doubt you'vealready begun receiving offers from a dozen ofother companies. They will also offer high limits!Just stand firm!
- answered by Miss V
Answer #12
Having a high credit limit is not bad by anymeans. It's just that you have to learn the selfcontrol to not put so much on credit if you don'thave the money to pay for it. Here's what I'velearned to do:I have three credit cards. They aregood for buying something when I don't immediatelywant to shell out a bunch of cash all at once.Even more so if there is some kind of emergency. Ipay all of my bills online. So when I buysomething that I would pay cash or debit foranyway...I put it on a credit card (alternatingbetween the three each time). Then I gohome...turn right around and make a payment forthat same amount that I would have done adebit/paid cash for anyway. So instead of justpaying cash...I'm building credit and alsoavoiding getting a sky-high bill. It's hard to getcredit line increases from some companies, though.The higher the credit limit (and the lower youractual balance on it)...the better it contributesto your overall credit score. And creditors andlenders look at stuff like that to determine yourAPR percentage rates and such. So by having highercredit limits with lower balances and a goodcredit limit...you can get good stuff like lowerinterest rates. Probably even a better rate onsomething like a mortgage. My cards have somepretty crazy amounts on them, which I never planto actually max out. But I keep wanting them tobump up the limit...because I know I'll beresponsible and won't let them get too high, bysimply not buying something on credit that I knowI can't pay it back with current or soon-to-comemoney. Clearly, that limit *helps* your credit.Hang on to it...just watch how you spend on itthis time. Also...use it some, to keep the accountactive a little bit. But keep the amounts as lowas possible. Or simply put something on it and usethe method I described above, which has workedwonders for my credit; buy something on creditthat you would pay for by cash anyway. Then set uponline bill payment (if you don't have italready)...and go home and pay that amountimmediately as soon as it posts. That way you alsoavoid any interest charges, but keep your accountin good standing. :-)I think it's good to have atleast two credit cards...but probably not morethan three. I've found that three is the bestnumber for me and has helped my credittremendously. No...one credit card with atremendously huge limit on it will not necessarilyconsitute a huge increase on your credit or creditscore. It will help some. It's like saying...whichis better? A good reference from one person, or agood reference from 3 people? Companies prefer the2 or 3 "people" (credit card providers who showyour loyalty to them by posting so on your creditreport for each monthly statement) as opposed tojust one. It just overall makes you look better.Having a large amount on that one card *will not*raise a red flag with establishing anythinganywhere else...as long as you don't have somehuge amount charged on the card.
- answered by Anonymous
Answer #13
umm just dont use all of it..
- answered by B.B
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