Will a credit rating hit affect my credit card limits?

Say I have credit cards with a credit line totalling 50,000, and I have not used any of the credit.





Then, suppose my house gets foreclosed, and my credit gets shot. Will I still be able to use the 50,000 credit line from cards that I got BEFORE I took the credit hit?

Will a credit rating hit affect my credit card limits?
As soon as the foreclosure hits your credit report, credit card companies will each re-evaluate your credit lines. It will be individual company decisions, but most of them are very risk averse these days, and the outcome won't be good.





I'm not recommending this, but people in this theoretical position often take the money out before the evidence of foreclosure hits their credit. I'm assuming this is some sort of short term emergency and that you have every intention of repaying -- it would be fraud to take the money out knowing you won't be able to repay.
Reply:No - the foreclosure will not effect your current credit cards, but it will take its toll for future monetary decisions you make.





You can still use your credit cards with no penalty.





However - the best rule of thumb to keep credit scores high is to close ANY accounts you no longer use. It is better to re-open an account for the period you need it - an identity theft deterrent as well.





But in your case - it sounds like you will need your credit cards - I personally think credit cards pull you down financially. Use them only in the event of an emergency and save for the things you want.
Reply:I don't agree with the above answer, I wouldn't close any accounts, as that will not raise your score, but actually lower them, also, credit cards are on each others side when it comes to protecting each other from risky lenders, so you could find your accounts closed or lower limits out of the blue to protect themselves.
Reply:ALOT OF BANKS WILL DECREASE YOUR CREDIT LINE DOING RANDOM CHECKS SUCH AS HSBC THEN ALL OF A SUDDEN YOU ARE OVER THE LIMIT WHEN YOU WERE NOT BEFORE