Your credit line has just been increased...

[Shaun @ Tru6]

just got an email from my Household Bank card saying they've increased my limit. I didn't get any notice and would have preferred they not increase it.

can you tell them to drop it back down without hurting your credit score or hurting the bank relationship? Certainly don't want an increase on the interest rate.

[onewhippedpuppy]

Why? Just don't use it, I don't have the slightest clue what my credit card limit is. Or are you concerned about fraud/identity theft?

[masraum]

Yes. You can request that they decrease your limit. It shouldn't hurt your credit score. I'd think the only thing it might do to your bank is frustrate them.

[A930Rocket]

As hard as it can be to get credit for some, I'd leave it alone. If you have a low balance, it will help your score, as your balance to total credit will be low.

[Shaun @ Tru6]

OK, I'll leave it alone.

[Buckterrier]

Originally Posted by Shaun 84 Targa

OK, I'll leave it alone.

Shaun,
I'd reconsider. Say your limit was 10,000 and they raised it to 15,000. Now if you go for a loan they look at that 15 as if you've used it because it is the limit. It will limit your ability to get a loan. Especially with you having a business, you need more flexibility than JQ Public.
I've called twice after getting notices and told them not to raise mine. There are no issues with the cc company.

[Christien]

Mark is absolutely right. It's a commonly-held misbelief that high credit limits with low balance help your credit. That's not necessarily the case. A lender can look at a combined limit of say, $40K and say, well, tomorrow this person could go out and max out all of these credit cards. So that 40K credit limit just became a liability against you.

[epbrown]

Originally Posted by Christien

Mark is absolutely right. It's a commonly-held misbelief that high credit limits with low balance help your credit. That's not necessarily the case. A lender can look at a combined limit of say, $40K and say, well, tomorrow this person could go out and max out all of these credit cards. So that 40K credit limit just became a liability against you.

Both are true - having a high limit with low balances does increase your credit score, as they track how responsible you are with the credit you have (always maxed and paying minimums v. paying off monthly). For something like a home purchase, a lender might ask that someone close one of their credit accounts to reduce their limits, though that isn't really common from what I hear.