Credit card applications, a review of the facts
Almost a third of your credit score is based upon how much of your actual credit limit you have utilized. Your percentage of debt will increase, if your limit is lowered. Your credit score could consequently be hurt. The cancellation of an inactive card can also affect your credit score, since long standing credit cards reflect positively on your credit report. Over half of the people that have credit cards in the United States carry debt on those cards.