Timeline for Is it rational that agencies downgrade your credit rating if you close a card?
Current License: CC BY-SA 4.0
3 events
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| Jun 18, 2018 at 9:06 | comment | added | Dheer | @Bennett Lowering of Credit Limit Voluntarily by individual or forced by Bank is currently not distinguished. I guess [?] Lowering of Credit Limit Voluntarily is a recent phenomenon; maybe this will get factored in if there is some sort of indicator. I guess more and more individuals [rightly] are taking a view that even if covered by insurance / fraud protection; Credit Limit should be more in line of spending habit rather than affordability [salary benchmark]. | |
| Jun 18, 2018 at 8:14 | comment | added | Bennett | "So all things being equal; a person earning say 100K; A has credit limit of 50K and spend on 25K is better than B having a credit limit of 30K [implicitly assumed his salary is not 100K but less] and spending 25K." -- Ok, but in the hypothetical I'm proposing, a person had a credit limit of 50K before they lowered it themselves. But the fact that they used to have it at 50K, should be an indicator that their salary was enough to get that credit. (Admittedly this logic doesn't apply if the bank closed the person's card because the bank might know their salary went down.) | |
| Jun 18, 2018 at 8:09 | history | answered | Dheer | CC BY-SA 4.0 |