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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.[/quote]

Did it change your credit score?   My husband is obsessed over keeping his credit score over 800 and sometimes the most ordinary transaction will lower it.  He said that if you use certain cards they will drop your score even though it’s paid in full on time.

I got a Bloomingdale’s credit card when he came to the store with recently to get a suit.   I wanted a card because I shop there a bit and they have great incentives for card users.  The application, which I used all my husband’s info, asked if you wanted an American Express card also. I checked yes.  We got the cards and my husband’s credit went down to 785.   He was so upset.  I don’t understand how it works and I don’t think he always knows either.

If you have the same income, same charges and payments routine, why would they approve a new card and the credit score goes down?   [/quote]

Credit scores have a lot of factors. I assume they did a credit check when you applied, which will lower your score in the short term.

Also, a higher number of credit cards will lower your score. This may be offset somewhat by the overall credit limit being higher so your usage percentage will go down.  That being said I think number of credit cards is a fairly negligible affect as I have 5 credit cards and an 800+ credit score.[/quote]

1.  To the PP, that behavior around a 15 point score drop is frankly insane.  There is no functional difference between a 785 or 800 when it comes to applying for a mortgage or credit card- everything above around 760 is "Prime" and will get you the lowest rates and highest odds of approval.  If you aren't applying for a mortgage anytime soon, there is literally no reason to pay attention to your credit score unless it dropped by probably 50 points+.  There is nothing magical, in any way shape or form, about having a score above 800.

2.  Yes your score goes down by around 5-10 points when you apply for a new card, because that generates a "hard pull".  Usually that drop only lasts for a month or 2.

3.  Having more cards generally doesn't lower your score, and as you said, having a lower usage rate from a higher overall credit limit helps your score.  I have a LOT of cards and an 840 score. Good in depth summary here.

https://onemileatatime.com/insights/my-credit-score/

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