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Available Credit - should I ask to reduce my limits

Last post Thu, Dec 20 2007, 11:36 PM by keithf7scrub. 5 replies.
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  •  Thu, Dec 20 2007, 11:36 PM

    Re: Available Credit - should I ask to reduce my limits

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    HI Nata with ref to the above the creditors/lenders will also look at your available funds and will assess if they think you will have too much money available to you before they will loan any further funds. so having a lot of available credit may also go against you,

    K
    • Post Points: 5

  •  Mon, Dec 17 2007, 12:44 AM

    Re: Available Credit - should I ask to reduce my limits

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    When creditors are looking at loaning you money Nata they only look at you credit limits and how much money you spent! see so it might help your application as you have larger limits than alot of people. So when you do apply for a new account you will be seen as a lower credit risk

    Thanks Ian

    • Post Points: 20

  •  Sun, Dec 16 2007, 11:41 PM

    Re: Available Credit - should I ask to reduce my limits

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    However high or low your credit limit that is also your liability too.
    • Post Points: 5

  •  Sun, Dec 16 2007, 10:40 PM

    Re: Available Credit - should I ask to reduce my limits

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    Thanks for sharing your opinion.

    My current account + the loan + the credit card with 3.3K limit are with the Royal Bank of Scotland. The new card (10k limit) is Halifax's (Bank of  Scotland), applied online from MS site.
    • Post Points: 35

  •  Sun, Dec 16 2007, 5:33 AM

    Re: Available Credit - should I ask to reduce my limits

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    Personnaly if you know how to handle your account I'd keep them, it cannot do no harm unless you have a large balance outstanding, it should actually work in your favour I think. Wish I was in your position. Who are your credit accounts with if you dont mind me asking?
    • Post Points: 20

  •  Fri, Dec 14 2007, 11:24 PM

    Available Credit - should I ask to reduce my limits

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    Hi there,

    Is there any rules how to assess what is your "approptiate" limit for available credit?  And what is good for your credit rating - to have a higher limit or lower?

    The thing is that the credit limit given on my new credit card exceeds my needs by far - £10K  (never asked for that!). Should I ask to reduce it to £2-3K which is as far as I will ever go (I've grown up now, so no unafordable purchases). I have got 2 cards - another one is with £3,300 limit. I'm just off 0% on this one (no outstanding balance), that's why opened a new one.

    Plus I have got a credit limit of £8K!!! (never asked for this and never used) on my current account. To me 10K + 3.3K + 8K = 21.3K available credit sounds over the top since this is on top of my debts: a loan - about £9.5K left;  plus a mortgage - about £122K.

    Should I ask to reduce my not needed credit limits in a view that they may affect my future applications (I'm planning to shop for a cheaper loan rate after Christmas to repay my current one which is at 11%) or the fact that I don't use these limits only adds to my credit score?

    Many thanks for your responses.
    • Post Points: 20