Anyone ever request a credit line decrease?

[aphex]

Just got back from my honeymoon to discover that one of my cards nearly tripled my credit limit on their own good measure (got the letter today)...

Do credit cards ever allow you to request a credit decrease?

 

[Garet Jax]

I did - they granted it. I had way too much and there was no reason to have so much.

 

[shortspanishguy]

why would you want to do that? It can only help your utilization %. Now if you can't control your habits then that is a different story.

 

[Ameesh]

why would you do this?! dumb dumb dumb

 

[aphex]

Originally posted by: Ameesh
why would you do this?! dumb dumb dumb

i've heard its good to keep 20-30% balance on your available credit, now my available credit is insane.

 

[b0mbrman]

Originally posted by: shortspanishguy
why would you want to do that? It can only help your utilization %. Now if you can't control your habits then that is a different story.

Even then, I'd rather have a higher balance when I lose control rather than being hit with over limit fees.

 

[b0mbrman]

Originally posted by: aphex

Originally posted by: Ameesh
why would you do this?! dumb dumb dumb

i've heard its good to keep 20-30% balance on your available credit, now my available credit is insane.

That's not true at all

 

[shortspanishguy]

Originally posted by: aphex

Originally posted by: Ameesh
why would you do this?! dumb dumb dumb

i've heard its good to keep 20-30% balance on your available credit, now my available credit is insane.

I don't think this is correct.

 

[ViviTheMage]

that 20-30 is bs!

 

[aphex]

well even so, i dunno if i like the idea of having that much available.... you saying i should just ignore it?

 

[b0mbrman]

Start here:

http://www.myfico.com/CreditEducation/

 

[shortspanishguy]

Originally posted by: aphex
well even so, i dunno if i like the idea of having that much available.... you saying i should just ignore it?

I don't understand what bothers you about it. Can you explain?

 

[aphex]

Originally posted by: shortspanishguy

Originally posted by: aphex
well even so, i dunno if i like the idea of having that much available.... you saying i should just ignore it?

I don't understand what bothers you about it. Can you explain?

I just don't like the idea that someone could charge a BMW 5 Series to my credit card... I trust myself, I've obviously been able to keep my score up enough for them to bump it to this level, but still, I just don't like having that potential there.

 

[simms]

"Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)"

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

As in, OP is right. There is a certain balance which is optimal...

 

[shortspanishguy]

Originally posted by: aphex

Originally posted by: shortspanishguy

Originally posted by: aphex
well even so, i dunno if i like the idea of having that much available.... you saying i should just ignore it?

I don't understand what bothers you about it. Can you explain?

I just don't like the idea that someone could charge a BMW 5 Series to my credit card... I trust myself, I've obviously been able to keep my score up enough for them to bump it to this level, but still, I just don't like having that potential there.

I would let it be. The credit may come in handy in the future.

 

[simms]

Originally posted by: b0mbrman

Originally posted by: shortspanishguy
why would you want to do that? It can only help your utilization %. Now if you can't control your habits then that is a different story.

Even then, I'd rather have a higher balance when I lose control rather than being hit with over limit fees.

If I ever spend as much as my CC limit, I would have many more problems than an "over limit" fee.

 

[everman]

Originally posted by: b0mbrman

Originally posted by: aphex

Originally posted by: Ameesh
why would you do this?! dumb dumb dumb

i've heard its good to keep 20-30% balance on your available credit, now my available credit is insane.

That's not true at all

Carrying a balance does not help you at all. Having a higher limit is good for your score, just don't use it. (get rid of it if you don't think you can be responsible with it though)

 

[shortspanishguy]

Originally posted by: simms
"Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)"

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

As in, OP is right. There is a certain balance which is optimal...

yes and it's not 20-30%

 

[kranky]

Originally posted by: shortspanishguy

Originally posted by: simms
"Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)"

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

As in, OP is right. There is a certain balance which is optimal...

yes and it's not 20-30%

From the discussion board at myfico.com, one of the myfico staffers wrote:

While no one can really say how long it will take to reach a score of 680, it looks like you're already there with one bureau and getting there with the other two. The best things to do over the next few months, besides not being late on anything, are: 1) get your credit card balances down as low as possible without paying them off completely or closing them, i.e. <$100 is ideal; and 2) don't open any new accounts.

Link to thread.

But let's remember, unless you are applying for credit, there's no point to trying to manipulate your score a few points.

 

[pcslookout]

Good idea! Lowing ones credit is a lot better than increasing it. Gives you character and self control!

 

[SoulAssassin]

Originally posted by: shortspanishguy

Originally posted by: simms
"Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)"

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

As in, OP is right. There is a certain balance which is optimal...

yes and it's not 20-30%

Yeah, it's about 20-30% lower than that. Carrying a balance under the belief that it will improve your score is insane. OP, just leave it. The only time having a line that big might be when you're going for a mortgage and they tell you that your exposure is too high. If that would happen, you have plenty of time to reduce the lines and you can usually get them bumped back up after closing. Should someone charge a 530i on the card (and no dealership would let them because of interchange fees) you're legally only responsible for $50 and every major credit card company out there has a no liability policy that gets you out of even the $50.

 

[jagec]

Originally posted by: aphex

Originally posted by: shortspanishguy

Originally posted by: aphex
well even so, i dunno if i like the idea of having that much available.... you saying i should just ignore it?

I don't understand what bothers you about it. Can you explain?

I just don't like the idea that someone could charge a BMW 5 Series to my credit card... I trust myself, I've obviously been able to keep my score up enough for them to bump it to this level, but still, I just don't like having that potential there.

Credit cards are GREAT about disputing false charges.

Don't worry about it. There's nothing wrong with a high credit limit.

Oh, and never carry a balance...that 20-30% thing makes the credit card companies very very happy, but doesn't help your personal finances or your credit score.

 

[spidey07]

Originally posted by: aphex
I just don't like the idea that someone could charge a BMW 5 Series to my credit card... I trust myself, I've obviously been able to keep my score up enough for them to bump it to this level, but still, I just don't like having that potential there.

You're not liable for fradulent charges that you did not approve.

Don't lower your available credit - it will harm your score costing you thousands of dollars.

 

[crt1530]

No. Nor do I wear tinfoil hats.

 

[chusteczka]

Originally posted by: aphex
...
Do credit cards ever allow you to request a credit decrease?

Yes, I do this regularly. I keep an available line of credit on my cards at an amount that I can pay back. For example, there is no reason for me to have a $10,000 credit line if I would have a hard time paying back $5,000 credit debt. Just make sure to talk to your credit provider and ensure they will refuse any charges that bring your debt above your credit limit, without charging you a late fee. This is how credit cards used to work before the credit providers realized they could earn more money by allowing these excessive charges, charging over the limit fees, and earning more interest on the increased debt.

Originally posted by: aphex
i've heard its good to keep 20-30% balance on your available credit, now my available credit is insane.

I believe this to be incorrect. Any advice provided with the goal of increasing your credit score is merely conjecture since the formula for calculating credit scores are well kept trade secrets by the credit companies. My understanding of credit is that common sense and thoughtfulness will win.

Originally posted by: aphex
well even so, i dunno if i like the idea of having that much available.... you saying i should just ignore it?

I also do not like having more credit available than I need. My view on credit cards is that they are easily used by thieves in situations of identity theft or even by fraudulent businesses that randomly decide to charge you for something. It is good to keep an available amount of credit that you need rather than what others can use.