Does this impact my FICO score?

It could affect your credit score, but it is not likely in the scenario you describe. Your credit utilization ratio (percentage of outstanding credit used to available credit limits) is 30 percent of the weight of your credit score. Since you pay your balance off each month, it's likely that the amount of outstanding credit used is low relative to your aggregate limits in any given month. However, you need to keep in mind that even if you pay off your credit card balances in full each month, at any point in time you have an outstanding balance, and that will be reported to the credit bureaus. For example, I also pay off my card balances each month, but I travel frequently for work, and sometimes I carry up to $10,000 in balances until I make the payments. To have the highest possible credit score, I need aggregate credit limits of $100,000 to stay under the desired threshold of 10 percent credit utilization ratio.

I notice some of the other contributors mention higher utilization ratios. You can still maintain a decent credit score with a credit utilization ratio up to 30 percent, but to have the highest possible credit score (over 800) you'll need to keep your ratio to 10 percent or less.

I suggest you monitor your card balances at all times during your credit card cycles and divide this total amount by the total aggregate of card limits. If your balance exceeds 10 percent of the aggregate limits at any time during the cycles, you'll need to apply for one or more additional credit cards in order to lower your credit utilization ratio.

I recommend you consider a credit union or community bank instead of the major credit card issuing banks for your next credit card account(s). The terms are much more favorable from credit unions, and they, for the most part, did not engage in the most egregious practices.

If you don't run your accounts up to more than 20% of the available credit lines, then your credit score should be just fine. The "amounts owed" category is estimated to be about 30% of your total credit score, so if you are below the 20% usage ratio you should be just fine.

You could always open another card and just use that from time to time to show another line of credit.

It's funny how they do things like this even when your doing well. No, lowering your available credit will not hurt your FICO score unless it lowers your Debt/Ratio. Usually 20% is a good amount to stay under. i.e. If you have a 2000.00 limit, then try and stay under 400.00 balance. But since you pay it off in full each mointh...your good 2 go

Don't you love it when they punish you for being responsible? Makes no sense, but in their eyes, since you are not paying their interest every month to carry a balance, you are a liability. Welcome to 2009! LOL

Your FICO may take a slight hit, because you will have less credit available to you, but, I don't think it is going to tank your score. You will be able to recover in no time with the way you pay your bills.

Your score may take a hit if that reduces your total credit available to the point that you are using more than 30%. Since the lender adjusted your limit, that in itself won't affect your score.

I don't think so.

One part of the score is the ratio of debt to credit limits.

If you have 0 or close to it as debt, the ratio doesn't change if the credit limit is 5,000 or 10,000

All you need to do that is benefit to yourself. Don't have to worry about the score. I think different banks have different policies so you can try other banks. This situation never happen to me. good luck.

Yes, it will impact your score if they have reduced your credit line. That's a negative sign..