To lower my lmit, or not to lower my limit?

everlastingspirit

Hi There,

This is my first post so hello!

Neway so bit of an update just paid of a Natwest loan of £2000ish over last two years, applied for a new loan of £6000 to pay off car hire purchase and a few other debts (ie: consolidation but main reason put was used car) over 2 years

Rejected.... ouch!

Anyway this is my own bank have been with for 8 years so was bit dissapointed and since i have been looking at ways to improve my credit. Now onto the main point. I have a Next Card which has a £3500 limit... but i only have used £400 and wouldnt intend to spend more than what is on it. Is it best for my credit score to say lower it to £750 ie: reducing amount of available/potential credit or is it best to keep it as it is ie: show im not using near my maximum credit.

Any advice is greatly appreciated :j

kpt_2

As far as I know, credit card limit has an impact on your creditworthiness, so if you don't use it, you should definitely get rid of it. Lenders usually don't look at how much you USE, they look at what limit you HAVE.

CLAPTON

whats you income
what are your total debts
are you on the electoral roll
is your credit rating excellent
are you a home owner

everlastingspirit

thnaks for responses so far... keep em coming.

Clapton:

whats you income: £16K/Year
what are your total debts £3000 Car + £2500 over 3CC 1 StoreC & Overdraft
are you on the electoral roll Yes
is your credit rating excellent Unsure - Always pay, rarely late (1 over year most?)
are you a home owner No - live with parents

Also if you need to know:

Age: 22
Time at address: 8 years
Time with bank: 5/6 years
time at current job: 11 months