Posts Tagged "utilization"

Asking your lender to reduce the credit limit on a credit card could hurt your credit scores

Dear Experian,

I have one credit card with a zero balance and a $10,000 limit. Will my credit score be hurt if I reduce my limit to $5,000?

– CGC

Closing store credit cards could affect your credit scores

Dear Experian,

Can closing a few of my department store credit card accounts affect my credit scores if I have established good credit and have high credit scores? My husband wants to eliminate our higher interest rate cards.

– LTB

Difference between “balance-to-limit ratio” and “debt-to-income” ratio

Dear Experian,

What is the appropriate balance-to-limit or debt-to-income ratio? I do not maintain a balance on my credit cards but worry that I have credit limits that are too high and could impact my overall credit.

– TBL

Utilization rate may be cause for lower scores when you have few accounts or low credit limits

Dear Experian,

I only have one debt which is less than $1,000. I also have two credit cards. Together they have a balance of about $2,000 each month, but I pay them off monthly. Why isn’t my credit score higher?

– KCE

Why closing a credit card can hurt your credit scores

Dear Experian,

Why does closing a credit card you are no longer using negatively affect your credit?

– VNO