Has anyone ever called to get their CC limit reduced?

[4forMe]

I have heard of credit card companies notifying clients that they were reducing the amount of credit available to them.

I'm wondering if anyone has ever called a credit card company and request that they reduce the amount of credit they are given. I'm thinking of a situation where a person might be afraid of maxing out their credit card that has a pretty high limit. It would reduce the possibility of maxing out a large amount of money. Do credit card companies allow customers to request this?

Just wondering.

 

[Darcy03231]

I have. I have one credit card that I use exclusively for on-line shopping. I don't want it to have a high limit in case it gets compromised. Every time it automatically gets raised I get a letter in the mail and then I call to have it lowered again. I've never had an issue with it once I've explained my reasoning. It protects the credit card company as much (if not more) than me.

 

[crashbb]

I haven't called to have it reduced, but I have declined a proposed increase a few times. My current limit is more than enough for me and increasing it just messes with my credit/debit balance. I'm not worried about running it too high (I don't think I've come anywhere near the limit, other than once or twice the first year or so I had the card and the limit was very low).

 

[MomToOne]

I have heard of credit card companies notifying clients that they were reducing the amount of credit available to them.

I'm wondering if anyone has ever called a credit card company and request that they reduce the amount of credit they are given. I'm thinking of a situation where a person might be afraid of maxing out their credit card that has a pretty high limit. It would reduce the possibility of maxing out a large amount of money. Do credit card companies allow customers to request this?

Just wondering.

I have. I had an absolutely ridiculous amount of open credit on credit cards at one point. I felt I was a sitting duck for credit thiefs. So I called and had one card that was particularly ridiculous reduced. I still have waaay too much (unused) open credit, so it didn't hurt my credit score in any significant way.

 

[amy-momofthree]

Yes they do!
We did it last month. Dh had the same credit card for 15 years and they kept increasing the line. We barely use this card because we have another that offers better rewards. So, dh called the credit card and had his limit lowered. We didn't want to cancel the card since he had it for a super long time but we didn't want all that available credit out there under our names either.

 

[thomas998]

I'm curious... what is the optimum amount of open credit to have based on your gross income... I'm sure there must be come calculation for your credit score that looks at this number... anyone ever heard?

 

[baseballmickey]

Is there an alternative? I've never tried this, but I have experienced problems using credit cards when I tried to make a significant purchase and I have to call to have them approve it... so... along those lines, could you possibly set a self-imposed limit on the card by asking the cc company not to allow any purchases that bring your balance over a certain $ amount?? So in effect, they enforce for you, while at the same time you keep your official limit in place, both for helping your credit score and also to have for emergencies??

anyone ever try this? I might try it myself, if I can get the balances down first!!

 

[minnierocks]

We have done this with no problems. I have an online card as well with a very low limit...for the same reason that a PP suggested. When you make the request, ask that a block be put on the card for any automatic increases. The limit will stay the same indefinitely. Also, you can block it and decline any transaction that will put you over your limit. I hope this helps...
To figure out how much you need, watch your spending for a few months and find an average of what you usually charge I would add a little more for a cushion and set the limit there.

 

[christygobar]

I did this recently. The CC company gave me a HUGE open credit limit and I knew that it was totally unnecessary. Given my history in my 20s to spend up to the credit limit, I didn't want that option available to me.

I made a simple call, they asked how much I wanted my limit to be and I told them. No hassle, no asking "why." I was glad I did it

 

[DawnM]

http://www.qccredit.com/disp/understanding_your_credit.html

I'm curious... what is the optimum amount of open credit to have based on your gross income... I'm sure there must be come calculation for your credit score that looks at this number... anyone ever heard?

 

[canadianjovigirl]

I have done it a lot with no issues as i dont need a $10,000 limit.......and if i do (paying for vacation) i just transfer money from savings to the card and then i have a credit and can spend away............

Other than that i like a low limit so i never have to worry about having a huge amount of credit card debt again.................

 

[DiznyDi]

I have requested my limit be lowered and have also requested no random increases, both of which have been honored. I have also requested no checks - you know, the ones they include in your statement to entice you to purchase something you really don't need. This has also been honored.

 

[Mambo Junkie]

I did, when I was trying to help my son establish credit. We got a small card with a 500.00 limit, and after a while they raised it up to 800.00. I asked them to lower it back to 500.00.

 

[quentina]

Yes, years ago, I went overboard with plastic and it took me YEARS to dig out so, I now have one CC.....with a credit line of $500.00. They raise it, I call and lower it. I have noted on the account to not go over $500.00 unless, I ask. I do not want a balance, do not want the ability to carry a balance and choose to only use the card every other month to have it remain active. It was a hard lesson learned........

 

[Cheshire Figment]

I look at it from the opposite side. A big part of a credit score computation is the utilization rate. The higher the rate the lower the score.

Let's say you are carrying a total of $2,000 in balances on one or more cards. If your total limit is $20,000 the rate is 10%, if the total limit is $10,000 you are using 20% and if the limit is $5,000 you are using 40% of your available credit.

The difference between 10% utilization and 40% utilization can be around 100 points on the credit score.

 

[dntd]

Right now we are thankful for our high amount card, we have had major dental bills,college expenses and insurance all come at the same time. By the end of the month though it should be down to zero again.

 

[timmac]

I'm curious... what is the optimum amount of open credit to have based on your gross income... I'm sure there must be come calculation for your credit score that looks at this number... anyone ever heard?

Credit scores are based only on information contained in your credit file; gross income is not part of that information.

 

[wvjules]

I look at it from the opposite side. A big part of a credit score computation is the utilization rate. The higher the rate the lower the score.

Let's say you are carrying a total of $2,000 in balances on one or more cards. If your total limit is $20,000 the rate is 10%, if the total limit is $10,000 you are using 20% and if the limit is $5,000 you are using 40% of your available credit.

The difference between 10% utilization and 40% utilization can be around 100 points on the credit score.

Exactly. I dont know why anyone would want to purposefully increase their utliization.

Oh, and the person who is trying to establish credit for their son...let them increase the limit. That is improving his credit.

Gross income doesn't mean diddly squat when it comes to credit score.

And lastly, available credit does NOT equal debt.

 

[bumbershoot]

I have done it a lot with no issues as i dont need a $10,000 limit.......and if i do (paying for vacation) i just transfer money from savings to the card and then i have a credit and can spend away............

Does it work that way?

The difference between 10% utilization and 40% utilization can be around 100 points on the credit score.

With 10% being *better*?

Oh, and the person who is trying to establish credit for their son...let them increase the limit. That is improving his credit.

.....

And lastly, available credit does NOT equal debt.

Available credit can indeed mean more debt; look at the stories told in this very thread, for real-life examples of people who want help to govern themselves.

And in a young person, keeping a limit low can be important; I know that I would have been in a MUCH better place if Discover had kept my limit very very low when I was in my 20s. I did bad things b/c of the higher limit, got myself into an impossible situation, and it all imploded from there.

People have to know themselves, and there seems to be a whole lot of self-knowledge in this thread that a hypothetical, the way it should be, comment like yours ignores.

 

[C.Ann]

A friend has one that he uses exclusively for very limited online purchases.. The limit was waaaaay too high, so he called and had it reduced to only $500.. The company had no problems with that (eventually) - although they did try their absolute best to get him to keep it at a much higher amount.. Gee - I wonder why?