Comments on: Credit Card Limit Decreased? Don’t Cut Up the Card http://www.smartcreditchoices.com/blog/2008/11/credit-limit-decreased/ Be Smart About Credit Cards Thu, 24 Dec 2009 19:51:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: admin http://www.smartcreditchoices.com/blog/2008/11/credit-limit-decreased/comment-page-1/#comment-201 admin Fri, 20 Feb 2009 22:30:49 +0000 http://www.smartcreditchoices.com/blog/?p=141#comment-201 You're right Joe. The last thing you want to do is cancel the card, especially if this will increase the percent of available credit you are using. This can make a huge difference in your score. For a lot of people, it could be the difference between having excellent credit and good credit or good credit and average credit. Anyway you look at, cancelling a card you no longer use can be a critical mistake. You’re right Joe. The last thing you want to do is cancel the card, especially if this will increase the percent of available credit you are using. This can make a huge difference in your score. For a lot of people, it could be the difference between having excellent credit and good credit or good credit and average credit.

Anyway you look at, cancelling a card you no longer use can be a critical mistake.

]]> By: Joe http://www.smartcreditchoices.com/blog/2008/11/credit-limit-decreased/comment-page-1/#comment-200 Joe Fri, 20 Feb 2009 22:22:37 +0000 http://www.smartcreditchoices.com/blog/?p=141#comment-200 Pete is incorrect. Cancelling the card will hurt you in a couple ways. First, FICO considers what percentage of the combined limit of all your cards is being used. If you cancel the card, you lose points because you lower your combined credit limit. Second, FICO considers what percentage of your limit you use on each card. So if you pay off a card and cut it up, you're losing a card with a perfect balance. Pete is incorrect. Cancelling the card will hurt you in a couple ways.

First, FICO considers what percentage of the combined limit of all your cards is being used. If you cancel the card, you lose points because you lower your combined credit limit.

Second, FICO considers what percentage of your limit you use on each card. So if you pay off a card and cut it up, you’re losing a card with a perfect balance.

]]> By: Pete http://www.smartcreditchoices.com/blog/2008/11/credit-limit-decreased/comment-page-1/#comment-172 Pete Tue, 30 Dec 2008 15:08:22 +0000 http://www.smartcreditchoices.com/blog/?p=141#comment-172 "One of those steps shouldn’t be cutting up your credit card. If anything, getting a new credit card quickly may be the best thing you can do to limit the damage to your credit score and help you maintain a healthy credit score." Not true. Pay the balance and cancell the card. It will only decrease your revolving credit but it will not lower your credit score. Just make sure the card balance is ZERO before cancellation. “One of those steps shouldn’t be cutting up your credit card. If anything, getting a new credit card quickly may be the best thing you can do to limit the damage to your credit score and help you maintain a healthy credit score.”

Not true. Pay the balance and cancell the card. It will only decrease your revolving credit but it will not lower your credit score. Just make sure the card balance is ZERO before cancellation.

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