Need some credit card/credit score advice

[kanga1]

I have 3 Visa/MC credit cards and a bunch of store cards. Never carry a balance, pay them off every month. Recently I got letters on 2 of my visa cards that they had raised my limit to over $20,000. I have no need for a credit limit that high. At all. I was thinking of calling them and having them lower my limit to like $5000 each but would this have any affect on my credit rating? I am going through a divorce and will either be refinacing our home into my name only or buying a different home soon so I want to keep my credit record as clean as possible. Just wondering what would be worse, lowering my credit or having an available open credit line of over $40,000 with no balances. I have heard it is not good to have too much open credit either because then theoretically I could go from $0 debt to $40,000 debt virtually overnight.

[daisypaloma]

I'm of the opinion that the ratio of the lower balance you have v. the credit limit is better for your credit.

Aka $1K balance on a $20K credit limit is better than a $1K balance on a $5K credit limit. With this in mind, I'd say keep it as is for now until you've settled from the divorce (moving in/out, likely need for new furnishings, etc).

Good luck and sorry to hear about your divorce.