Reducing Credit Card Limit

df2008

Hi

Just a very quick question - I'm sure I've seen the answer on here before but I can't find it.

I'm nearing the end of my debt free journey (just £2,500 left on my credit card) - sticking to my very tight budget I will be making the last payment on 30 April.

The current limit is over £11k. I have paid off and closed all my other credit cards but I plan on keeping this one open after I have paid it off. Does anyone know if it will impact on my credit rating if I lower the limit (to say £5k). It's just that I'm not keen on having a large available balance in case it gets cloned etc.

Having read posts in the past I understand it is good to keep at least one credit card - not that I will ever be applying for credit again - I have definitely learnt my lesson!

Any advice much appreciated.

Thanks

df2008

System

Hi df2008

df2008 wrote: »

Does anyone know if it will impact on my credit rating if I lower the limit (to say £5k). It's just that I'm not keen on having a large available balance in case it gets cloned etc.

Having read posts in the past I understand it is good to keep at least one credit card - not that I will ever be applying for credit again - I have definitely learnt my lesson!

Some might say that £5k is still a very high limit, but it's relative I suppose. Can you imagine ever having any unbudgeted costs to pay out for that will reach that sort of amount?

To answer your other question, it might improve your credit rating if you lower the limit because credit checks will look at how much credit is available to you at the time and if it's loads then they might think twice about lending to you.

I would definitely lower it ASAP. Perhaps think about a £1k level instead, to avoid temptation?

Red.