Check out the following post. It gives some insight into creditors can see on your credit report

http://www.canadianmoneyforum.com/showpost.php?p=3491&postcount=14

Well at the end of the day I’m happy with the provider. Not to mention I like the rewards they offer. On top of that for me to move would require applying for more credit. This would be another hit on my credit score which is currently on the mend.

Now I’m not entirely sure how this plays out on my credit score. Having less available credit will probably help increase my score.

However each lender has a section for “notes”. It’s very possible that this lender could update this notes section saying that they lowered my my credit limit. If other creditors have the ability to see these notes then they could be a bit more apprehensive in providing me with additional credit.

Maybe someone who reviews credit history can fill us in on how they look at these note sections?

I’m curious. Credit is a commodity business where credit providers provide $1 of credit for cents on the dollar. Since Company A’s $1 is no different than Company B’s $1, the premium that they can charge is a combination of their risk in lending to you and a charge to cover their costs + their profit.

Why would you continue to do business with this credit provider when their service and answers to your legitimate question are poor? The switching costs of moving from Company A to Company B are negligible.

Further, does the action taken by the credit provider, reduction in your credit limit, affect your credit score? If multiple credit providers take this action, what’s the impact to you?

- P

That’s part of the problem was that I recently ran a credit score so the decrease was a bit surprising. Hopefully it’s just the lenders pulling back a bit.

A number of credit issuers, not limited to credit cards, have reassessed the limits they extend to customers. This has nothing to do with you and everything to do with the balance sheet at the credit issuer. I know it may feel like a kick in the pants, but it really has nothing to do with your history or your credit score. The issuer is just trying to shore up their position by trimming the amount of credit they have made available to customers. The issuer has made too much credit available to clients and now they’re correcting. It makes sense to trim unused credit first (i.e., yours).