Egg - should I decrease limit?

sukey13

I have some egg cards and wonder if it helps my credit rating by decreasing the limits as they said I can't use the cards anyway as I opted out of them increasing the APR (obviously).

Should I just leave them or should I get the limits decreased down to closer to the money outstanding on them?

Thanks

YorkshireBoy

sukey13 wrote: »

Should I...

I think your question is more 'can' I?...because I'm not sure you can if you've opted out of a rate increase by agreeing not to use the card anymore.

Maybe best to ask Egg if you can, before deciding if you should (which will depend on many factors, most notably your total debt, total available credit, and income).

sukey13

Yes I can. It says you can request a decrease which will take effect immediately. My question is should I? Would it improve my credit rating? r shall I just leave it?

Thanks

YorkshireBoy

sukey13 wrote: »

Would it improve my credit rating? r shall I just leave it?

How much credit card and overdraft debt do you have?

What's your total available credit across those cards and overdraft(s)?

What's your income?

Personal questions yes, but whether you should or not will depend on the answers to those questions, specifically the following ratios:

Used credit to available credit (<50-70%)
Used credit to income (<50%)
Available credit to income (<100%, ideally <70%)

Where do your figures sit?

sukey13

How much credit card and overdraft debt do you have? About £36K over several ccs. About £7K overdraft.

What's your total available credit across those cards and overdraft(s)? About 9K spare.

What's your income? About 40K +

Personal questions yes, but whether you should or not will depend on the answers to those questions, specifically the following ratios:

Used credit to available credit (<50-70%)
Used credit to income (<50%)
Available credit to income (<100%, ideally <70%)

Where do your figures sit?

YorkshireBoy

sukey13 wrote: »

Used credit to available credit (<50-70%) 83%
Used credit to income (<50%) 107%
Available credit to income (<100%, ideally <70%) 130%

Your figures are in red above.

In my opinion lowering your limits will adversely affect your credit rating.

sukey13

Thanks. I will leave it well alone then.

jakesuk

YorkshireBoy wrote: »

How much credit card and overdraft debt do you have?

What's your total available credit across those cards and overdraft(s)?

What's your income?

Personal questions yes, but whether you should or not will depend on the answers to those questions, specifically the following ratios:

Used credit to available credit (<50-70%)
Used credit to income (<50%)
Available credit to income (<100%, ideally <70%)

Where do your figures sit?

When you say "available credit to income (<100%, ideally <70%)" do you mean unused credit available or total credit available?

YorkshireBoy

jakesuk wrote: »

When you say "available credit to income (<100%, ideally <70%)" do you mean unused credit available or total credit available?

Total credit available, ie the sum of all the credit limits on all your revolving credit facilities such as credit cards and overdrafts.

Obviously the figures I suggested don't take into account any fixed duration/fixed amount credit facilities such as loans and mortgages, ie those that appear on your CRA report as 60 x £156 for a loan or 216 x £876 for a mortgage, which will impact on the percentages deemed excessive/acceptable by lenders.