Quote:
Originally Posted by karenkc
Thanks for the replies. I closed 7 dept store credit cards yesterday that had 0 balances and one of my Visa cards raised my limit by 2k the same day. So perhaps this was due to closing the cards. Anyway I called my visa and had them lower my limit to what it had been.
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The increased Visa limit was surely a coincidence. They wouldn't have known yet about closing the other accounts.
Why did you request a lower limit? Generally, a higher limit is more advantageous since it makes your utilization ratio lower. You never want to charge more than 30% of your available limit, so $5,000 limit means you should never charge more than $1,500. I've read several articles recently suggesting that ideally you should keep your charges to no more than 10% of your limit, or $500 or a $5,000 card.