Originally Posted by
EasternTraveler
That is a key question. If they lower it, they would have to know how much to meet the minimum credit limit requirement of the new card plus any overhead percentage in the computer algorithm. Also, they would have to be certain that they are not slated for any auto reduction and that any lowering would result in the credit being available for the card they apply for. I personally think it is risky and not a sound method of trying to outthink the computer.
Like
beltway said, it's not rocket surgery. I'm not trying to out-think the computer with a perfectly optimized value, just make simple changes to free up possible CL for new card apps without risking harm to my credit score.
Understand as part of the context for this that new CCs sometimes come with a CL well over $20,000. That is more than I realistically need, especially for any CC that is not going to be a long-term daily card.
My process goes something like this:
- I make no changes to the CL before I meet the SUB target, unless the CL is something ridiculous like over $25,000.
- Once I meet the SUB target, if the card is one I plan to use daily I'll lower the limit to $16k-20k. Note I usually only have 2 cards in this category.
- If the card is one I'll use for 1-2 years but only occasionally or for a specific bonus category (say, airline or hotel affinity card) I lower the limit to $8k-12k.
- If the card is basically sock-drawered until I cancel I lower the CL to $5k.