How will this affect my credit report?

[annibe11e]

I have a line of credit at a credit union. I have not been very responsible with it in the past and I'd like to reduce credit available as I pay it down.

For instance, the credit line is $6500 and I currently have a balance of $6000. If I ask the CU to reduce my credit line to $6000, so I can't borrow that $500 available credit, will those balance amounts affect my credit score?

Please note, I'm not referring to a utilization percentage but rather if the "highest balance" vs. "credit limit". If, based on those numbers, it looks like I went over my limit, does that hit the actual credit score?

TIA!

[disneysteve]

Please note, I'm not referring to a utilization percentage but rather if the "highest balance" vs. "credit limit". If, based on those numbers, it looks like I went over my limit, does that hit the actual credit score?

Well you are referring to credit utilization. If you borrow $6,000 of a $6,500 line that's not quite as bad as borrowing $6,000 of a $6,000 line. It never looks good to be totally maxed out.

Rather than reducing your credit line, focus on paying down the debt. Stop using the credit line and get it paid off.

[Fishindude77]

If you have not been very responsible using your line of credit, and are thinking about reducing the amount, why in the heck do you care what your credit score is?

A good credit score just proves you are good at borrowing money and will allow you to do more borrowing .... something you say you have not been responsible with.

Focus on paying it off.

[bjl584]

All you need to do is tell your CU to freeze the account. It will still be open, but you won't be able to make any new charges against it.