October 25th, 2009 
Credit curious asked:
Is it wise to decrease your credit limits on credit cards that are seldom/never used? I know not to close the accounts because it will hurt my credit score, but if I just lower my credit limit, as long as I am still under the magic 10-30% usage of my total credit limit, can that actually help? I have heard that having too much credit can be considered a negative. I am hoping to purchase a home within the next 6-8 months and I am trying to do what ever I can to increase my chances of a good mortgage rate. BTW, I have done the free credit reports, and everything is correct. I have paid off most of my credit debt over the last year, and I am currently at about 15% of my total credit limit. I do have too many credit cards (6), but I am afraid to close them outright. Of those six credit accounts, three are completely paid off and never used, the one I regularly use is paid off every two weeks, one should be paid off completely in a month, and the other is getting paid off before I start filling out mortgage applications. I also have student loans, and a car loan that I am currently paying off as well. Sorry if this is too much information, but I want anyone who can give me an answer to have the full picture. Any help is appreciated.
Ron
Is it wise to decrease your credit limits on credit cards that are seldom/never used? I know not to close the accounts because it will hurt my credit score, but if I just lower my credit limit, as long as I am still under the magic 10-30% usage of my total credit limit, can that actually help? I have heard that having too much credit can be considered a negative. I am hoping to purchase a home within the next 6-8 months and I am trying to do what ever I can to increase my chances of a good mortgage rate. BTW, I have done the free credit reports, and everything is correct. I have paid off most of my credit debt over the last year, and I am currently at about 15% of my total credit limit. I do have too many credit cards (6), but I am afraid to close them outright. Of those six credit accounts, three are completely paid off and never used, the one I regularly use is paid off every two weeks, one should be paid off completely in a month, and the other is getting paid off before I start filling out mortgage applications. I also have student loans, and a car loan that I am currently paying off as well. Sorry if this is too much information, but I want anyone who can give me an answer to have the full picture. Any help is appreciated.
Ron
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