Credit Reduction!

[flyboyron]

I have a Sears credit card that I just don't use.

I think we got it when we bought something and they said we could get a discount if we applied and charged it on the account.

 

So now years later, they send me a letter saying that if I don't use the card by May 31, they will reduce my credit limit from $10,000.00 down to $2,001.00.

 

Will this have an effect on my credit rating if they lower the credit limit?

 

I know closing the card would affect my credit rating, so I don't know which is better.

 

Any ideas?

[Tattooo]

It would effect your utilization.

[The Zip]

 

Will this have an effect on my credit rating if they lower the credit limit?

 

A 10K limit could lower your credit rating if you "used" the entire limit, so don't let those jerks scare you. Losing a card defines length of credit history, but dropping the limit may actually help your rating. Read up on it and find out what affects your rating.

[Spurshot]

Dump em. Your credit rating is established by your history of loans and repayment.

[muddkatt]

It will lower your credit rating a few points at the least. It depends on lots of factors, but mainly how much credit you have on other cards and how much is utilized.

Why not knock the dust off of the card and buy a 6 pack of cokes or beer with it and then park it again. Closing old accounts is not recommended if you plan on making a large purchase in the next year or so.

[Shawn5800]

I agree with muddkat. Buy something small and keep it open. I have another question relating to credit. Does anyone know why these little fluctuations happen in credit? I can be climbing steadily and do NOTHING different spending wise, opening accounts, etc. and it drops off a few points. I'm trying to break that 800 mark and its pissing me off.

 

 

[muddkatt]

The reports from credit karma and credit dot com are usually about 30 to 45 days late in posting paid balances, but seem to be quick to pick up new charges. If you want to break 800, try to pay off every card you can and leave them unused for 60plus days. Depending on how much you use credit cards, try to only use 1 is you must, and keep the balance below 20% of the credit limit.

[Shawn5800]

Odd, I only have one credit card that I use and it almost never sees over 20 % of max limit. I will try pause my credit spending for a period of time to see if that helps.

 

Thanks