Can REDUCING your credit limit affect your rating?

southernscouser

Sorry to clog the boards up with all my posts, but I'm sure you all love reading them! :rotfl:

Have recently just reduced my Egg CC limit from £8,300 to £1,500 (about 2 weeks ago). I now want to reduce it to maybe £500. Could this have any negative affect on my credit rating?

Thank you in advance.

SS

Bargain_Rzl

Any effect should be positive - the less available credit you have, the more willing people will be to lend you more money...

southernscouser

Bargain_Rzl wrote:

Any effect should be positive - the less available credit you have, the more willing people will be to lend you more money...

Thanks BR.

Thats what I thought but wanted to make sure.

Sleekit

Quick word of warning - a couple of years ago I tried to reduce my credit limit on my egg card via their automatic on-line service - and was refused! The computer was confused as it's set up to deal with people asking for an increase in their limit, not the other way around. I eventually did it over the phone, although it could have changed since then. How did you do it previously?

KatrinaC_2

I found that the man in the call centre was very confused when I called Halifax card services to reduce my limit. He actually asked twice whether I wanted to reduce to £2000, not increase by. :rotfl:

To give him his dues though, he reduced it in about 30 seconds after establishing that it was what I wanted.

Kat

southernscouser

Sleekit wrote:

Quick word of warning - a couple of years ago I tried to reduce my credit limit on my egg card via their automatic on-line service - and was refused! The computer was confused as it's set up to deal with people asking for an increase in their limit, not the other way around. I eventually did it over the phone, although it could have changed since then. How did you do it previously?

Yeah did it online no probs.

southernscouser

KatrinaC wrote:

I found that the man in the call centre was very confused when I called Halifax card services to reduce my limit. He actually asked twice whether I wanted to reduce to £2000, not increase by. :rotfl:

To give him his dues though, he reduced it in about 30 seconds after establishing that it was what I wanted.

Kat

The bloke at Capital One sounded a bit bemused when I said reduce my limit! Just the way he repeated "reduce"! :rotfl:

tattooed_lady

southernscouser wrote:

The bloke at Capital One sounded a bit bemused when I said reduce my limit! Just the way he repeated "reduce"! :rotfl:

I just recently reduced my Barclaycard limit from £1100 to £500 as the interest rate on it is sky high and I don't use it anyway, just wanna keep it open incase I ever want a low rate BT. The guy sounded bemused!

frugglewump

Last month when i reduced my credit limit the woman on the other end started asking me income details etc. I was very confused and asked her why she needed this in order to allow me less money. I don't know if she ever understood because during the conversation while i was trying to point out that the limit i was asking for was under my current limit the exchange near here hiccuped and all the phones went out for 3 hours.

YorkshireBoy

southernscouser wrote:

Have recently just reduced my Egg CC limit from £8,300 to £1,500 (about 2 weeks ago). I now want to reduce it to maybe £500. Could this have any negative affect on my credit rating?

I can see (from your signature) what you're trying to achieve, but wouldn't the old Egg limit have helped with it's anniversary offer?

I know it's always a trade-off, but just thought I'd offer another view.

NB: If it's the Egg Money (old Blue) card, ignore the above!

mountainofdebt

I recently found out that I had a £3600 limit with next....not realy needed as I've only spent the old £50 so I phoned them to reduce it to £200 (well you never know do you!)

Had the same response as everyone else here.....and was even told that they don't get too many of those phone calls!