Because of the credit crunch that America is currently facing, many people are facing lower credit scores, even if they aren’t having trouble making their payments. Why you ask? Because of the credit limit on their credit cards.
Let’s say Bob Jones has a credit card with a $10000 limit. He is currently carrying a $4000 balance, which makes it look as if he is at 40% utilization on his credit cards; a good balance to be at. The credit score FICO likes you to stay around 30% to be at “perfect” utilization. Now let’s say that the credit card company considers Bob to be at a high risk because he has a balance. They lower his credit limit to $4500. This now looks as if he is maxed out on his credit cards, which makes his credit score take a huge hit!
This is happening! The best thing to do is to call the company and ask them WHY they have done this. Plead your case to get your credit limit back. If that doesn’t work, pay off the card, close it, and take your business elsewhere to a company that appreciates it.
Have balances, or late payments, and want to get them removed from your credit report? Kenyon Credit Services can help! Visit us online at www.kenyoncreditservices.com to see what we can do to help you today.
