Credit card question
Hello,
We have two credit cards that have very high limits which leads to us having a large amount of available credit. We like these cards as they have useful benefits when we do use them. I know that you have said that closing credit accounts hurts your score but would asking for our limits to be lowered do the same thing or would that help due to having less available credit.
Thank you
Terry Says
Well, there are two ways to look at this. Yes, card issuers note that you have a lot of leeway when you have a high credit limit and use very little of it. But unless other factors indicate you might be likely to run up a lot of debt, this is not a very critical issue.
And if the card issuers see a pattern of increased spending, they might very well contact YOU to reduce your credit limit!
The LENGTH OF CREDIT HISTORY carries a far higher weighting in your credit score. So if these are your oldest cards, you’ll want to keep them.
Are you about to buy a home, a car, or apply for a job or life insurance policy? If none of the above, then a few points on your credit score is nothing to worry about.
