I learned some interesting financial information the other day. I applied for a loan and was curious as to why my credit score went down. Now I have few bills and I pay all of them on time also I very seldom have a balance on my credit card. I have savings, not much but some and my monthly obligations are much less than my income (for now that will change when the cabin is finished!!) so why did my credit score go down, your not gonna believe this but you see, last summer I canceled 2 credit cards and had my one remaining credit card limit reduced. I never used the 2 cards I had canceled; they were tied into my home mortgage and my equity line, so I did not see any reason in keeping them. The one card I kept had a high limit, more than I could ever afford to pay back if I was dumb or desperate enough to use it, so I thought it would be responsible of me to reduce the limit. Boys and girls here is why we have the financial problems we have now, the credit bureau penalized me for being what I feel is financially responsible. Here is how it goes, if YOU cancel a card it reflects on your credit score the same way it would reflect if your creditor canceled the card because of poor payment, the same applies if you reduce your limit. Another little heads up if you have 10 credit cards each with a $10,000 limit as long as you don’t use more than $4,999 on each card it will not reflect on your credit score but if you have 1 credit card with a $500 limit and you put $300 on it, you will get poor marks on your credit score. You are penalized if you use more than half of your credit limit no matter what that limit is. If you were to have 10 credit cards and go to the bank to get a consolidation loan they use to tell you to get rid of 9 of them, now they say, keep the cards just don’t use them you don’t want to mess up your credit. This just does not make any sense to me.