Lowering Credit Limit on Cards

pickleiamin

As mentioned on another thread I am in the proccess of battling my CC debt.

I am going to keep one of the cards once I have cleared the debt, for emergancy, if possible I will get a lower %APR card for the same reason.

I was thinking, would it be worthwhile when I pay off an amount to lower my credit limit? I.e would I have a better score or standing in my credit file?

simax

I'd leave it until the balance is cleared. For example, if you have a £2,000 limit and are currently at £1,900 used, you are at 95% of your available credit, which looks bad. Say you clear £1,000 off. Then you have 45% used, which looks good. If you then decreased the limit to £1,000 it'll go back up to using 90% of your available credit, which then looks bad.

Make sense?

pickleiamin

Yes it does, thanks very much Not looked at it that way at all.