Reduce Credit Limit request - good idea?

Concretecows

Does anyone know if it is a good idea to request a CC company to reduce your credit limit as you pay off the balance? For example say a balance of £6000 was transferred to a card and the balance is now £4000 - would it be a good idea to ask for the limit to be reduced to £4000. Other unused limits are already available on other cards and being kept for emergencies. My guess it would help with credit scoring for when the 0% deals are coming to an end?!?!? What do you think?

Cheers
Concretecows :beer:

[Deleted User]

My guess is that it may be a good idea for you, but not neceassarily a good idea for any one else. It all depends on individual circustances, and there is no hard and fast rules. Personally, I think you don't need a higher credit limit than what you can afford to pay off in any 1 month, particularly if you always pay the statement balance. This would obviously help when applying for new cards, and in the case of fruadulent use.

Paul_Herring

Concretecows wrote:

Does anyone know if it is a good idea to request a CC company to reduce your credit limit as you pay off the balance? [...] My guess it would help with credit scoring for when the 0% deals are coming to an end?!?!? What do you think?

Yes. It will generally help your credit score (if total available credit is one of the things that the company looks at.)

[Deleted User]

Paul_Herring wrote:

Yes. It will generally help your credit score (if total available credit is one of the things that the company looks at.)

Although I've seen it posted that the ratio of debt to credit limit on a card is also a consideration (ie owing 4k on a 6k limit looks better than owing 4k on a 4k limit).

CIMA_LOVER

anactuary wrote:

Although I've seen it posted that the ratio of debt to credit limit on a card is also a consideration (ie owing 4k on a 6k limit looks better than owing 4k on a 4k limit).

Oh I have to agree