Yes. You are measured by a series of calculations through your FICO credit score that determine how good a credit risk you are. How much debt you have accounts for 30% of your score and is one the biggest factors that makes up your FICO credit score. One of the primary ways this is done is by the debt to available credit ratio. Debt is how much you owe on all of your credit cards. Your available credit is total amount of credit lines that have been extended to you. The more debt you have the lower your FICO credit score. Your debt to available credit will get much worse if your credit limits are cut.
So if you have a $10,000 limit on a credit card and let's say you have a $2,000 balance owed on it. So your debt to available balance would be 20% ($2,000 is 20% of $10,000). Now let's say the credit card company lowers your limit to half of what it once was to $5,000. That would cause your debt to available credit ratio to double to 40% ($2,000 is now 40% of $5,000). This will undoubtedly have a negative consequence your FICO credit score.
The best way to keep your FICO credit score unaffected is to pay off your debt.
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