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precizion21

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Fingerhut temporary credit line increase and what it will do to my score
I have a bit of a puzzle to figure out and could really use some help from anyone who may have run into this.

I have a fingerhut account that I originally set up to help me rebuild my credit. I was very successful thanks to this card but it isnt something I use anymore. This month I got a letter that they gave me a temporary credit line increase and that if I wanted to keep it, I have to spend 600 dollars before it expires.

So my problem is that I have no need or interest in buying 600 dollars worth of fingerhut wares so I know that my credit limit for their card is going to go down 600 dollars in the next two months. My assumption is that this decrease in the credit limit is going to hurt my credit score but I am not sure how badly.

So do I allow this to happen and hope for the best or should I cancel the card? It is my oldest card by about 8 months. Which action will do the least damage to my score?

Your help is greatly appreciated.
Tim

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Hi Precizion21!

In general, credit scores do go up and down based on your total credit limit, your credit utilization ($ charged / $ total credit limit), and your total debt to income ratio (this would factor in things like a mortgage or car payment).

$600 is not enough to really effect your score in any serious way (both up or down).  Closing the account entirely could have a negative impact (average age of accounts).

I hope this helps.

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