Personal Finance
Credit and Debit Cards
Money Management

When credit cards companies reduce your credit limit how does that affect your credit score?

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Wiki User
2007-07-27 15:27:38

It could be huge. BUT, if you have a $0 balance............which

you won't matter. It's all about percentages. A credit

card w/ a $1000 limit w/ $300 on OK (keep all cards below

30%). A credit card w/ a $500 limit and $300 on it is BAD (60% of

the credit is USED). The key here is to "HAVE" CREDIT........NOT

"USED" CREDIT. It's all about percentages. Credit is only

credit......if it's available.

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