@khemikalhardkore :
having your credit limit unexpectedly lowered WILL definitely lower your credit score if you're caring a balance on the account. 30% of your credit score is based solely on amount you owe on your accounts (i.e. The balance/limit ratio). The higher the ratio (the more you owe compared to your limit), the more it hurts your credit score. For example, if you owe $2500 on a $5000 limit credit car the your ratio is 50%. Imagine the credit company decides to lower your limit to $3000, now you don't know any more money but $2000 on a $3000o credit card which gives you a balance/limit ratio of 83%. So now you have gone from owing 50% to owing 80% all without doing a single thing. This will absolutely lower your credit score significantly. Remember the balance/limit ratio is the second most important factor (30% of credit score) when calculating your credit score, the most important being your payment history (35% of total score). For more information check out this article. http://www.mortgagescanada.ca/mortgage-credit-score.html
