The Credit Score Information Site

Credit Score Myth 1: Boost Credit Score With Lower Credit Limits

If you do not know it yet, one of the factors considered when determining your credit score is the difference between your balance and credit limit. Some people think that asking their creditors to lower their limits could help improve their credit scores. Well, they should think again. If you lower your limit, the difference will be reduced and this is the one that will be considered by the FICO formula. It does not distinguish whether the new limit was imposed by the creditor or requested by you. The formula will only notice the small gap between your set limit and balance, which basically, is not good.

Instead of asking your credit limit to be lowered, tackle your problem from another angle. You can choose to reduce the amount of debt you owe, effectively widening the space between your limit and balance. 

Further Reading: See below for more information on Myths About Credit Scores

Myths About Credit Sores: Introduction 
Myth 1: Boost Scores With Lower Credit Limits
Myth 2: Closing Accounts Will Improve Credit Scores
Myth 3: Consumers Can Hurt Credit Score By Checking Their Report 
Myth 4: Shopping Around For Best Rates Will Hurt Credit Score