One of my credit cards continuosly jacked up my limits every now and then to over 25k. I thought it was a little high, so I called up, and told them to lower it down to 10k. My other card has a limit of about 15k.

I thought having such high limits were a negative to a credit score, and makes you more of a risk come loan time just due to the possibility of the excess debt you could get into.

I never carry a balance, and my only debt at this point is my monthly car note which is paid on time.

Reading up on how ditching those unused cards could actually be a bad thing, I wasnt sure if reducing your limit would have the same effect as you still have x amount of charges as a percentage of a lower limit.

If it was a bad thing, woudl calling them, and asking them to rasie it back up count as a hard hit on my credit report?

Thanx in advance.

 

here is some advice from www.creditexpert.com, hope it helps

 

In short, high limits = good. High balances = not so good.

I'd keep the limit where it is.... I am sure all of us have available credit that is beyond our means. Our ability to manage those limits is what keeps credit scores high!

 

I have heard that high limit on credit card means you have high liability, more likely to owe debts. That was what happened when I financed my car years ago, and yes, it also ties into your yearly salary as well.

 

This can also be the case, but it all depends on the individual scenario.

Bottom line, if you don't need $25K limits, lower them. In your case(paying off every month), it's not going to make much difference either way.

And furthermore, to qualify for such high limits, your score is probably excellent anyhow.

 

If as long as your Balance is very low or 0, it does not make a difference what your credit limit is. You say you pay it of every month so do whats best for you. In YOUR Case Reducing your Limit will NOT affect your score

 

Thanx alot guys. I'll just leave things as is instead of asking them to raise it back up.

 

Yeah, I got mine lowered due to extreme paranoia on my part with no penalty. 25K limits are insane unless its some sort of business CC.

 

damn good question i was gonna ask

 

Looking at another fourm a member posted the following ......

"With a string of bad luck, layoffs, medical bills, etc. my husband and I have accumulated the astronomically embarassing amount of unsecured debt totally $220K (NO - you didn't read that wrong - this is very embarassing for me to write)"

All because of CCs and high limits. An interesting but scary story of how easy it is to get way beyond your means with CCs

 

That's a pretty extreme example, but it is a very good reason to keep reasonable limits...(hell, just the minimum payment on $220K would be about $5K).

 

My card has no limit! I have charged in excess of 25k-30k with no problems at all! I do pay it off every month, or even every day though...Amex...don't leave home without it! And my credit score is well over 700, FYI.
Ed