Skip to main content

Lowering credit card limits: any point?


I almost lost my Mastercard this week after almost calling Citibank to lower my credit limit. I guess I didn't stuff it back into my wallet securely. Thank goodness Natalie the Traffic Master found it on the floor and got it back to me. I didn't even realize it was lost.

I mentioned this in a thread over at Give Me Back My Five Bucks, and another poster asked why I'd want to lower my limit.

Good question.
I now have three credit cards:

- a MC with about a $9000 limit
- an Air Miles amex with an $8000 limit
- a bank Visa with a $10000 limit

Total: $27-thousand in credit, plus a bank line of credit.

I don't use it. I really don't use it that much.

I pay off my balance in full each month, and I don't charge much on them anyway. At most, some airline tickets and hotel when we're travelling.

I've *heard* that when it comes time to apply for a mortage, lenders may look at credit card credit as entirely debt, even if you don't spend up to your limit. I don't want the lenders thinking I have $27-thou in debt when, in fact, I have none.

I'm sure a simpler solution would be to cancel a card, but ......

- I've had the MC since about 1994 (or earlier?), so that's my longest piece of credit history. I'd love to ditch it, though, 'cuz I hear narsty things about CitiBank. And they're American
- the Amex earns me Air Miles
- and the Visa is with the bank and gets me points.

So, I'm reluctant to part with any of 'em.

That's what I'm thinking. Am I off-base?

Comments

  1. I'd just find a mortgage lender who doesn't do completely stupid things like treat a paid-off credit card as 100% debt. I mean, honestly.

    And, I think it'd be a red flag for me. Like, what other shenanigans are they going to pull AFTER you're in to them for a hundred grand or so?

    ReplyDelete
  2. Yeah - no bank I have dealt with would use your credit card limits as debt. They will use your credit score, income (combined or not) to determine your potential lending amount but shouldn't use your credit limits against you.

    ReplyDelete
  3. read Gail's May 3d column, served with a slice of "I told you so"

    http://www.gailvazoxlade.com/blog/page/3

    ReplyDelete
  4. Ah, thanks lilsis ... that's probably where I saw it intially and it festered in my brain for a few weeks. The full article is at http://www.gailvazoxlade.com/blog/archives/112.

    ReplyDelete

Post a Comment

Popular posts from this blog

A request, as we reach two years

Wow, long time no write.

I didn't enjoy this past winter. I was certainly in a long slump. Things were very challenging at work. Gordon was awesome, as always, but I was just in a sustained funk from last summer on. And I'm not sure I'm all the way out of it yet. I'm still largely in quiet hermit mode, but have been making progress at resuming social contact. Little dude and I have a very busy summer that will go by in a flash.

This Thursday will mark two years since Amanda died. I still replay the events of that night in my head almost every day. I'd like to not. Sometimes it feels like forever ago, but sometimes I'm right there all over again.

Hey, can I ask for your help with something?

Two years ago, so many wonderful people told me that if there was anything they could do to help .... Well, I don't ask often. And I should've asked more. And I should ask more even now. I'm still not comfortable asking. But I'm asking for this.

I put out a vi…

Hard to believe it's been a year - but it has

One year ago today, we lost Amanda.

Time plays tricks on all of us. We can think "that was so long ago" at the same time as "it feels like yesterday." I run into this all the time with Amanda's death.

Yes, it feels like just yesterday, or last night, or later today, that Amanda collapsed in the kitchen and died after that long, brutal battle with ovarian cancer. But every day has ticked by at a pace like any other, and it's been a whole year of those days, with incremental and sometimes revolutionary change.

As I move about our home, it's hard to fathom that she's been gone a whole year.

Many of the decorative items she carefully arranged throughout the house are in the exact same place as the last time she touched them. She had the vision, not me, so I've been reluctant to disturb her decisions on what looks good and works.

In other places, I'm reminded that it's been at least a year since something's been in place. Like the fully-s…

Amanda's cancer has returned, just months after treatment

It's been two and a half months since the last update on this blog, and I was hoping to write one soon with lots of good news.

I was going to write about our recent trip to Jamaica, where we got to go snorkeling, bake in the sun and meet nice people from around Canada and the USA.
I was going to write about how Gordon is now 11 months old and exceeding all our hopes. He's a little dynamo who's not that little -- out of 100 babies his age, no normal one would be bigger. He's spectacular and we love him to bits.


I was going to write about putting the finishing touches on the Twin City Wrestling TV show that I've been working on for the past several months. It's just about ready to be sent in to the broadcaster, and it looks great.
I was going to write about the Canadian Cancer Society using our story in a very moving fundraising letter for their winter campaign in Nova Scotia.
I was going to write about Amanda's trip to Toronto to learn about how Prince Marga…