does your total credit limits affect your credit rating?

stucapewell

Just been told by egg that it does, checked my four cards and found 40,000 total credit limit. have now reduced them down but am wondering whether anyone else has heard of this (the guy at amex was very surprised, no-one had ever asked for a decrease, and he was sceptical about it affecting credit scores)
this is my first thread so be gentle
thanks
stu

YorkshireBoy

Available credit is a major influence both on card acceptance and credit limit set. As lenders try to be more "responsible" they appear to be tightening up in this area now.

Available credit is assessed against disclosed salary, and many lenders are not happy if the ratio goes above 50% (as reported on here) and could decline an application when the ratio exceeds 100%.

Credit rating article (also accessed through blue box above)...

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101485056,23650,

Careful_ly

Yes it does affect your rating

Quote from Capital One rejection

Could my application be affected by other credit commitments?

Your application may be adversely affected by information indicating that any credit you hold has been in arrears. We also take into account the total amount of credit commitments you already have when deciding whether to offer you any further credit.