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  #1  
Old 11-26-2007, 01:31 PM
bfd1211 bfd1211 is offline
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Default Simple Credit Question

Does requesting a CC company to lower your limit adversly affect your credit score?
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  #2  
Old 11-26-2007, 02:38 PM
Brad1970 Brad1970 is offline
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Default Re: Simple Credit Question

Possibly. For example, if you have a card with a $10k limit but carry a balance of $5k, your limit-to-balance ratio is 50%. If you have them drop your limit to $5k (with the same balance) then your ratio rises to 100% usage & affects your score. That's a pretty elementary example but you get the point.
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  #3  
Old 11-26-2007, 02:55 PM
JordanIB JordanIB is offline
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Default Re: Simple Credit Question

A related question: If you pay off your bill in full every month, do you always have a 0% utilization?
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  #4  
Old 11-26-2007, 03:24 PM
ItalianFX ItalianFX is offline
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Default Re: Simple Credit Question

I had someone tell me about 2 weeks ago that by paying off your CC in full each month, it can actually hurt you.

I told him he was an idiot.

Thoughts?
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  #5  
Old 11-26-2007, 03:32 PM
Brad1970 Brad1970 is offline
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Default Re: Simple Credit Question

[ QUOTE ]
A related question: If you pay off your bill in full every month, do you always have a 0% utilization?

[/ QUOTE ]

You will if the credit report is pulled during the time between payoff & new charges being billed to the account. It's basically a snapshot.
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  #6  
Old 11-26-2007, 03:34 PM
Brad1970 Brad1970 is offline
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Default Re: Simple Credit Question

[ QUOTE ]
I had someone tell me about 2 weeks ago that by paying off your CC in full each month, it can actually hurt you.

I told him he was an idiot.

Thoughts?

[/ QUOTE ]

You are correct...at least by US standards. [img]/images/graemlins/wink.gif[/img]
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  #7  
Old 11-26-2007, 05:41 PM
bfd1211 bfd1211 is offline
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Default Re: Simple Credit Question

[ QUOTE ]
Possibly. For example, if you have a card with a $10k limit but carry a balance of $5k, your limit-to-balance ratio is 50%. If you have them drop your limit to $5k (with the same balance) then your ratio rises to 100% usage & affects your score. That's a pretty elementary example but you get the point.

[/ QUOTE ]

But if you are one who carries zero balance and just believe they have over extended credit to you there would be no harm in having them drop the limit?
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  #8  
Old 11-26-2007, 06:30 PM
Brad1970 Brad1970 is offline
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Default Re: Simple Credit Question

Nah, probably not.
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  #9  
Old 11-27-2007, 06:22 PM
emon87 emon87 is offline
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Default Re: Simple Credit Question

[ QUOTE ]
I had someone tell me about 2 weeks ago that by paying off your CC in full each month, it can actually hurt you.

I told him he was an idiot.

Thoughts?

[/ QUOTE ]

he's an idiot
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