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Does lowering your credit limit on a card hurt your credit score?

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2014-02-20 15:38:43
2014-02-20 15:38:43

Lowering a credit card's limit may cause a credit score to go up,down, or remain the same. Factors that impact a credit score can include: the amount a credit limit is reduced, on-time payments, new accounts being opened and if balances are paid down or increased.

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2014-02-05 18:21:37
2014-02-05 18:21:37

Lowering a credit card's limit may cause a credit score to go up, down, or remain the same. Factors that impact a credit score can include: the amount a credit limit is reduced, on-time payments, new accounts being opened and if balances are paid down or increased.

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Related Questions


Someone's credit card limit is determined by examining their credit score. Typically, one who has good credit will receive a much higher credit card limit than one who has a bad credit score.



It depends back in January of 2006 I was prequalified for a WellsFargo credit card with a 1000.00 credit limit and my credit score was between 600-620, since then to date my credit score has dropped to 578-599 and I have received two credit limit increases from them , this could be because a credit card company doesn't base future increases souly on your credit score once you are an established customer but on your payment history and credit limit management skills. www.wellsfargofinancial.com


The highest spending limit will vary person depending on one's credit score and ratings. The following credit card companies have the highest credit spending limit: Chase, Turbo B, Amex Black card.


If you pay credit card 1 on time and are never late, but your overall credit score is poor, are chances good that they won't lower the credit limit on credit card 1


Varies with individual's credit score-they are not all the same.


You can start by never paying over your limit on a credit card. You will have a good credit score that way and will always be approved. If you do go over your limit and fail to pay back the debt in time, your credit score will get worst.


A visa credit card can be acquired through a person's local bank. The bank will check a person's credit score, determine their credit limit, and issue the card. The interest rate with depend on the credit score of the applicant.


It should be reported effecting your score, also balance on it can either improve or reduce your score.


Having a poor credit score impacts one's ability to get a credit card and even a mortgage. If one is still able to get a credit card, the interest rate is likely to be higher and the credit limit lower.


i can only give you my opn **IT WOULD LOOK LIKE FOR SOME REASON like your credit card company lowered your limit do not do it. JUDE KAGABINES LEXINGTON SC


No, only if the account is a paid closed account. What affects your score is utilization of your credit limit, which should only be about 25 to 35%.


If you feel it absolutely necessary to "throw your card(s) away" after paying them off, I suggest to just cut the card, and toss. However, DO NOT, DO NOT close your credit card account! Why, you may ask . . . one of the things that effects your FICO score is your credit history with the credit card company. Another factor is the debt ratio. For instance, if you have a $2000 credit limit, and you have no balance on your card, that will positively affect your FICO score. But, on the same token, if you have a $2000 credit limit, with a $1500 balance on the card, that will reduce your FICO score.


The limit for an HBC credit card is communicated to the purchaser of a new Hudson Bay Company credit card directly. This is the only way that one can determine the cash limit and credit limit on an HBC credit card.


A credit card may negatively impact a credit history in a few ways. 1. Paying your credit card late will hurt your credit. 2. Keeping a high balance on your credit cards will lower a credit score. 3. Going over the credit limit will negatively impact your credit score.


Yes it will affect your score because of your utilization rate. Important: Reduce the balance of your credit cards to 30% and below of your credit limit. If you have a credit card with a $5,000 limit, your balance reported to the credit bureau should be $1500 and under in order to have a excellent credit score. If you go over this amount it will affect what is called your "utilization rate." Credit score formulas respond favorable to utilization 30% and below. It's a good idea to assess all of your credit cards and align them correctly with this formula. Use the form in the appendix. Please note: if you have an American Express card or card with no preset limits. You will be rated on the highest credit you have charged and the 30% rule still applies. Try using the card to increase your high credit limit by spending more with the card with cash you were already going to use and get that limit up to a ratio that will keep you within 30% of that high credit. This is why if you pay your credit off each month in full will not give you a great credit score.


Depends on other factors such as how many cards you already have and what the balances are in proportion to their credit limit. wowifixedmycredit.com


Yes but not significantly, unless it is a large amount, close to the maximum limit.


The limit on a Halifax credit card is determined by the credit history of the applicant. There can be no way of knowing ahead of time what the limit will be on the card.


ANSWER Paying your debts in a timely manner doesn't give your credit score best results !!!! Crazy isn't it ! This is called your balance-to-limit-ratio and counts for 30% of your credit score. In order to get best result you have to keep your balances at least 70% away from your limits.


No. The only thing that has any negative effect on your score is missed payments, insufficient payments, over limit fees, late fees etc.


If you are asking as it relates to your credit score.... Use your card each month and pay the balance in full each month. If you have the card charged up to your limit, that brings your score down. Making on time payments each month helps your score.


Yes it can if you keep the payments up, on time. Your bills for rent, electricity, phone and so on are also a big part of your credit score. Your credit score can be a little complicated but, for the most part, if you pay your bills on time your credit score will be a good one. Probably the most complicated part for average people is a credit card. If you have a credit card and your balance always runs pretty close to your credit limit, your credit score will be lower. On the other hand if you owe 10 to 15 percent of your limit it shows that you know how to manage your credit.


Assuming your asking about Credit Cards, you would probably only qualify for secured credit cards. You would need to put down a deposit equal to the credit limit on the card. If you want an unsecured credit card, one where a deposit is not required, you will have to fix your credit and improve your credit score.


Having a credit card and using it responsibly can help improve your credit score. It is recommended that you don't spend more than 30% of your credit limit. Also taking out an installment loan and making your payments on time, and paying down your credit card balances also helps your score.



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