Reducing credit card limit

matt-c_2

Is this worth doing?

Iv got an 8k limit on my barclarycard, iv only got 1k outstanding, once this is paid off il be looking to do a balance transfer of just over 3k

So to the point, iv been thinking about asking for the limit to be reduced to 4k as i really dont want to spend anymore on my cards

Thanks

hippey

It would prevent a huge bill should someone want to rip off you card, but I'm not sure if it makes that much of a difference. It could be harder to put up in the future should you need to.

ic

I've reduced the rate in the past (with Egg), and then when I found I needed it higher, it took a year or two of successive requests to get it put back up.

Moggles_2

I've been thinking about asking for the limit to be reduced to 4k, as I really don't want to spend any more on my cards.

The trouble is, the rest of the world - and other lenders in particular - won't see it that way.

Lowering a credit limit leaves no record on your credit file of the former more generous one. Nor will your credit files show it was reduced at your request (as opposed to Barclaycard's decision). Lowering credit limits can affect future applications for credit if you overdo it.

Bear in mind that potential lenders cannot assess the way you handle credit directly. The best indications they have are the payment history and credit limits on your existing cards with other lenders.

Other things being equal, it's better (credit score-wise) to have fewer cards with higher limits, than a clutch of cards with lowish limits. So, if you want to reduce your available credit, it's better to pay off the balance and cancel a card completely, as Martin advises. Cards that are closed down and marked "settled" stay on your file for six years and indicate that you can handle a decent-sized credit limit well.

matt-c_2

Moggles wrote: »

The trouble is, the rest of the world - and other lenders in particular - won't see it that way.

Lowering a credit limit leaves no record on your credit file of the former more generous one. Nor will your credit files show it was reduced at your request (as opposed to Barclaycard's decision). Lowering credit limits can affect future applications for credit if you overdo it.

Bear in mind that potential lenders cannot assess the way you handle credit directly. The best indications they have are the payment history and credit limits on your existing cards with other lenders.

Other things being equal, it's better (credit score-wise) to have fewer cards with higher limits, than a clutch of cards with lowish limits. So, if you want to reduce your available credit, it's better to pay off the balance and cancel a card completely, as Martin advises. Cards that are closed down and marked "settled" stay on your file for six years and indicate that you can handle a decent-sized credit limit well.

Appreciate this and the other comments, il be leaving the limit on this card then, and instead, as soon as iv transferred the balance from my capital one card il close that account