Credit Cards

Will lowering unused cards' credit limit help credit limit increase on my main cards?

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  • Feb 4th, 2017 2:14 am
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[OP]
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Apr 24, 2017
6507 posts
5178 upvotes

Will lowering unused cards' credit limit help credit limit increase on my main cards?

My CIBC Dividend Visa has $11k credit limit. I am not using it any more but have to keep it because of the longest account history. Should I reduce the credit limit to something like 1k? My Capital One/PCF WE anniversary day is coming soon (at the end of this month), and they will review my account to decide if I can get CLI and how much I can get. Will lowering unused cards' credit limit help credit limit increase on my main cards? I heard from some people that CLI could be declined if you already have "too much credit". Is that true?

It seems Capital One is very strict on credit limit increase, which really makes me nervous now. Plus they only review accounts ONCE per year. If your request are declined, you have to wait for another year.

- I have no plan to apply for mortgage in the near future, so I don't need to worry about this.
- Except for the potential increased utilization ratio, anything bad after manually reducing the limit?
Amex Cobalt - MBNA RWE - Brim WE
Amex Platinum - Bonvoy Brilliant Amex - CIBC Aeroplan VIP
2 replies
Jr. Member
Dec 15, 2014
178 posts
105 upvotes
Brossard, QC
If PCF capOne and CIBC are the only three credit cards you have at the moment, I personally don't think you need to lower CIBC to get a descent limit increase on CapOne.

Yes lower limit on other cards lowers your total borrowing capacity thus making it less risky for banks to give a limit increase. However high limit on a credit card from a big five also shows another bank that a competitor is willing to give high credit to you.

Of course, whether a CLI can be granted depends on your overall financial situation.
Member
Sep 9, 2016
204 posts
68 upvotes
Toronto
It will have no effect because there are two different institutions. It could have the opposite effect (If you carry any kind of balance) by increasing your utilization, whether now or in the future.

They say with credit, its easier to get when you'd not need it than when you do need it.

I dont know if CIBC does this but Scotia allows you to convert some of the credit limit to a line of credit at a lower rate.

So if you have 11K on your card you can take 10k and create a LOC and keep 1k on the card.

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