Decreasing credit card limit improve credit score

skooldaze

Hi there

Would decreasing my credit card limit from £5000 to £50 improve my credit score? Based on the theory that I have more 'credit' available overall. I don't actually use this credit card anymore but I have another one thats maxed out.

Also if I asked for an increase in my limit - would this change my score.

Finally - does either of this appear as a credit search?

Many Thanks

Davie2909

The best thing to do is move some from your maxed out to that one mate! You shouldn't use anymore than 75% of your credit available on your cards.

If you reduced the amount on your other card it would increase your credit rating as you would have "more revolving credit available"

skooldaze

I don't want to transfer it across as the one maxed out is 0% APR at present so I would be getting charged. At the end of the 0% I plan to transfer but want to ensure I can get a good deal so want to have best chance with credit.

I'm not planning on decreasing the amount on the card yet until I actually have to

DebtFreedom_2

In which case, I'd close the account you don't need. Reducing your credit limit might look like the bank did this and not you. Close it if you don't need it. If you wanted to raise your limit in the future, then the bank may do a credit search on you anyway.