I recently suffered a minor bout of “stolen debit card number/stolen funds” which got rectified in a matter of days. My banker suggested that I not use my debit card any more for internet purchasing as it’s risky to give potential thieves access to your checking account balance. Lesson learned.
So he opened me a low limit credit card to be used solely for internet/phone/non-familiar store purchasing. I’d actually been approved for a considerably higher credit limit but I told him I didn’t need it. He suggested transferring the “extra” limit over to another credit card I hold with them (I use that one for managing 0% interest purchasing so I don’t want to get regular interest-bearing purchases tied up in that one- I’m just enough of a non-mathematician to screw that up). My question to him was, “Won’t the increase in my credit limit count against my credit score?” He said “No.” (I have good credit- mid 700s)
My question to you is, “Was he right?”
I may be in the market for a new car and I would suspect that inquiries into my credit will turn up this high credit limit hanging out there and count against me in the financing department, unless there’s something I don’t understand. If I decided to lower this credit limit, how long until the reporting agencies show this and get me into better shape?