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justsomemechanic

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Why did my equifax drop 20 pts because I chose to lower a limit on a card?
Wanted a small limit card to use for gas and such. That way if the info was stolen to most that could be spent would be $500. Got the card from my bank with an $11,000 limit on it. Obviously that defeats the purpose of the card. Asked the bank to lower the limit back to the $500 I wanted and they did. Now it shows up as a negative reflection on score! So i take a hit on my score for trying to be proactive with my card security? If I just close the account will that hurt me even further?

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The point drop could be from opening that credit card if you applied it recently and its reported for the first time. Lowering the limit in itself shouldn't be negatively reflect in your scores, the indirect effect would be on your utilizations, $100 balance is scored differently on the cards has 500 and 11,000 limit, 20% vs 1%. If you close it now, at very least? won't better your scores at all, certainly won't reverse the effect, it might even drop your scores a bit more, depends on your credit profiles, you already took the hit from inquiry and new account, mind as well keep it open.

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Just have your bank restore the original amount and then ask for a second card with a 500 limit. I think the why was previously answered so no point in restating. But this way you can get your actors back up to what you want and also have a lower limit card if you still want one. 

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Apparently you have not read the articles on this site, and you should.  Credit Karma is here to TEACH how credit works and how to build a good credit score, and they do so very well.  Part of an improved credit score is having a large amount of available credit which shows that you are considered financially trustworthy.  Your idea of being 'proactive' in the event of losing the card needs correcting. If you report the loss of a card within 48 hours, you are not responsible for charges made by the thief. Closing the card will hurt you more.  Take the time to read what is on this site so you can become credit smart.

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