Reducing credit line on some credit cards???

[FrugalSaver]

When I was looking into getting into selling trade lines, I tried to get as high a credit limit as I could and, as such, have a few cards with a $40,000+ credit line.

Since these are cards that don't seem too popular with the tradelines and some are Chase cards, which don't sell very often on the tradelines, I'm considering dropping that balance significantly to say $10,000.

1) Is there any downside to doing this?

2) How soon would it positively impact my credit score (i assume the higher credit limit is negatively impacting my credit score to some degree even thoguh I pay it off to $0 every month). 

[kpd905]

The higher credit limit will probably be increasing your credit score, because you will have a lower % of utilization each month.

[FrugalSaver]

The higher credit limit will probably be increasing your credit score, because you will have a lower % of utilization each month.

Interesting.  I hadn't thought about this.  I'll have to research that.  My concern is that I'd like to have a higher limit on cards that will allow me to do balance transfers at a low interest rate cost to pay down some rental debt at a cheaper interest rate and the ones at $40,000+ don't really offer me those options.

[Systems101]

The higher credit limit will probably be increasing your credit score, because you will have a lower % of utilization each month.

It's a small effect, depending on your score and utilization %.  If the reduction won't drive you above 10% utilization, then the effect is likely to be negligible (single digit moves of credit score)

Also, this is true in the historical FICO systems.  In the newer versions, total credit can also be a penalty if overall credit is too large.  Of course, mortgages are done off a FICO system that is, at this point, reasonably ancient, so the older system is more valid to be concerned about (for now).

My concern is that I'd like to have a higher limit on cards that will allow me to do balance transfers at a low interest rate cost to pay down some rental debt at a cheaper interest rate and the ones at $40,000+ don't really offer me those options.

If they are all at Chase, call them up and have them move the limit to a different card.  It's simplest if you simply ask them to swap between two cards - so they don't have to do lots of math to make sure the before and after totals are the same.