Reducing credit limit

John_Marsdon

Just to say reducing your credit limit has a positive effect in your credit rating. A credit card limit counts almost the same as a loan ie if you have a 5000 limit card its similar to having a £5000 loan. It makes it less likely you will get other credit. This is because imagine you have that card, then apply for another at £5000. Then you max them both out, you could get yourself into trouble. Companies look at your borrowing potential on your file.

So in closing if you are interested in other credit options you are best to reduce your credit limit. Hope that helps.