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Reducing Credit Limit and Credit Rating
Penfold2012
Posts: 2 Newbie
in Credit cards
I just phoned up Virgin Money to reduce the credit limit on my card from £6k down to £1k as I am not using it much at the moment and don't intend to. I am also looking to apply for a new mortgage so want to minimise the amount of available credit I have.
When I called them I was told that it would show on my credit report and affect my credit rating. It would show that the limit was reduced but not if it was me or if they did it, meaning that lenders would be weary of it!!
Is this true? I have reduced limits in the past and never seen anything on my report before. Am I missing something?
Many thanks!
When I called them I was told that it would show on my credit report and affect my credit rating. It would show that the limit was reduced but not if it was me or if they did it, meaning that lenders would be weary of it!!
Is this true? I have reduced limits in the past and never seen anything on my report before. Am I missing something?
Many thanks!
0
Comments
-
It's a potential factor, but depends on how much other credit you have.
If it's one card being reduced out of 5, then it won't have much impact.
If it's your only card, it could look like no one trusts you with much credit. That scenario could make lenders weary, or even wary.0
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