Should I call the Credit card company to reduce my credit limit?

After several years of CC debt I finally made it a point in 07' to pay them off. So I wrote a $12,584.63 check (that hurt) to Visa to clear the remaining balance. The limit on this Visa was $16,000.00. Two weeks after the check was sent and applied to my account I received a letter from Visa stating â€˜congratulations we have raised your credit limit to $23,000.00'. I don't want/need that much credit and I am not sure if by keeping that limit helps or hurts my credit score or if I need to ever to apply for credit somewhere else if that will raise a red flag. Any adive of suggestions?

Having a high credit limit is not bad by any means. It's just that you have to learn the self control to not put so much on credit if you don't have the money to pay for it. Here's what I've learned to do:

I have three credit cards. They are good for buying something when I don't immediately want to shell out a bunch of cash all at once. Even more so if there is some kind of emergency. I pay all of my bills online. So when I buy something that I would pay cash or debit for anyway...I put it on a credit card (alternating between the three each time). Then I go home...turn right around and make a payment for that same amount that I would have done a debit/paid cash for anyway. So instead of just paying cash...I'm building credit and also avoiding getting a sky-high bill.

It's hard to get credit line increases from some companies, though. The higher the credit limit (and the lower your actual balance on it)...the better it contributes to your overall credit score. And creditors and lenders look at stuff like that to determine your APR percentage rates and such. So by having higher credit limits with lower balances and a good credit limit...you can get good stuff like lower interest rates. Probably even a better rate on something like a mortgage. My cards have some pretty crazy amounts on them, which I never plan to actually max out. But I keep wanting them to bump up the limit...because I know I'll be responsible and won't let them get too high, by simply not buying something on credit that I know I can't pay it back with current or soon-to-come money.

Clearly, that limit *helps* your credit. Hang on to it...just watch how you spend on it this time. Also...use it some, to keep the account active a little bit. But keep the amounts as low as possible. Or simply put something on it and use the method I described above, which has worked wonders for my credit; buy something on credit that you would pay for by cash anyway. Then set up online bill payment (if you don't have it already)...and go home and pay that amount immediately as soon as it posts. That way you also avoid any interest charges, but keep your account in good standing. :-)

I think it's good to have at least two credit cards...but probably not more than three. I've found that three is the best number for me and has helped my credit tremendously. No...one credit card with a tremendously huge limit on it will not necessarily consitute a huge increase on your credit or credit score. It will help some. It's like saying...which is better? A good reference from one person, or a good reference from 3 people? Companies prefer the 2 or 3 "people" (credit card providers who show your loyalty to them by posting so on your credit report for each monthly statement) as opposed to just one. It just overall makes you look better.

Having a large amount on that one card *will not* raise a red flag with establishing anything anywhere else...as long as you don't have some huge amount charged on the card.

The credit limit isn't the problem, you have to learn NOT to spend money on stuff that is not absolutely necessary.

Most people ignore their credit limit unless they need to make a large emergency purchase. - Ignore your credit limit and learn to budget. Figure out how much money you can afford to pay your credit card company each month, and try to spend less than that.

no.. having a higher credit limit is better for your credit score. Just learn to have some will power and spend up to your limits.

I think you should just leave it alone, if you need it then use it. If you don't, then don't. I don't think it will hurt your credit score anyhow.

umm just dont use all of it..

Oh wow I wish my card was like that! I think you should reduce it because if you try to get alone they will consider all the credit you have available and not give you a big loan but if you don't want to be in debt I would definately say reduce it because you don't any more debt right

Tell them not to raise it because when you apply for a loan they look not only at how much outstanding debt you have, but how much available credit debt you could go into if you maxed out all your lines. Increases the rates you get on loans

Remember that so long as you've been issued with a credit card, whatever the limit is your credit score will be effected. My suggestion is since it took that long to finally get yourself debt free, stay away from credit card whereever possible. Having the card would mean temptation to spent more. Cancel the card. From now onwards pay cash for your purchases. No cash means no purchases as simple as that and that's the way to keep yourself debt-free. Congratulations!

Yes. Call and have it reduced to $5000. And congratulations on paying off that huge debt! If you had only paid minimum payments, you'd be indebted to them for life!

The reason you want it reduced is akin to why alcoholics know that even one drink can set them back. You do not want, or need, to be seduced into that kind of bondage again. $5000 should be enough for an emergency. Small purchases and gifts can be handled with cash. If faced with an emergency requiring thousands of dollars, then your credit score will allow you to deal with it at that time.

If the company does not reduce your limit within the next two weeks, cancel the card. No doubt you've already begun receiving offers from a dozen of other companies. They will also offer high limits! Just stand firm!

If you have a zero balance, why not just close it out? Yes this will raise a flag because now that you have a 23,000.00 limit, it will look like the highest balance on that card was 23,000.00.

It also depends on you debt to income ratio.

A credit card is made out of plastic with 3 dimmensions : High, width and Debt !!!
Try to live without a credit card !
It will be difficult for the 1st 2 months, after that, once you have paid your DEBT off, you will be able to pay everything CASH - what a pleasure - credit cards are made by banks, shops and ONLY TO FORCE TO BUY AND SPEND !!!!
don't allow them to dictate you, what to do with YOUR monney ! They (banks and shops) are mercyless when you dont pay what is due to them !! be mercyless to them - don't GIVE your money to them.

Hi lower your credit the bank are only sending this letter out to you so they can get you to use your credit card more , you have to stop and think if you lost your card or it was stolen the person who gets hold of it can forge your signature and use your credit to this amount if you lower you credit to a resonable amount then you can only be ripped of for a minimal ammount

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