Approximately 1/3 of your FICO score is based on how much of your available credit you are using. This is called your "credit utilization".
The higher the utilization rate you have… the lower your credit score. The credit scoring models view this as you getting closer to maxing out your credit lines and becoming a higher risk.
Example.. If you have a $10,000 credit line and carry a balance of only $2,500 you have a credit utilization measure of 25%. If your credit limit is then cut by your credit card issuer to $5,000 then you jump to a credit utilization measure of 50%… lowering your credit score without you doing anything on your part.
If, however, your credit card company reduces your credit line on a credit card that you do not carry a balance on… then no impact to your score.
Welcome to the aftershock of the credit card reform act!
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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.
We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.
We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com.
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