Credit Limit ... will it affect my credit rating

miss_curly

Is anyone able to tell me if a reduction in the Credit Limit will affect my credit rating?

LLoyds just wrote to me saying that unless I phone in they want to reduce my Credit Limit by half ! Whilst this doesnt disturb me because I rarely dig into more than I can pay off in a few months I wondered if it may have adverse effects on my report . Any advice welcome

curly :female:

BugsyBrowne

miss_curly wrote: »

Is anyone able to tell me if a reduction in the Credit Limit will affect my credit rating?

LLoyds just wrote to me saying that unless I phone in they want to reduce my Credit Limit by half ! Whilst this doesnt disturb me because I rarely dig into more than I can pay off in a few months I wondered if it may have adverse effects on my report . Any advice welcome

curly :female:

It all depends on your credit utilisations on all your cards obviously if they reduce it and makes your balance close to the agreed credit limit then this will have an effect.

But also depends on your other cards usage also.

Sample 1 credit limit 5k balance 2k (positive)
Sample 2 credit limit 2k balance 1.9k (negative)

miss_curly

ah , no I'm nowhere near the limit (thankfully).

I have another credit card with a nil balance

More specifically they want to reduce from £15,000 to £7,500 .... I have approx £500. borrowed on the card ... It seems I can just phone in and ask for the limit to be kept as is ie no reduction .... for what its worth shall I ?

Many thanks for your reply Bugsy x

BugsyBrowne

miss_curly wrote: »

ah , no I'm nowhere near the limit (thankfully).

I have another credit card with a nil balance

More specifically they want to reduce from £15,000 to £7,500 .... I have approx £500. borrowed on the card ... It seems I can just phone in and ask for the limit to be kept as is ie no reduction .... for what its worth shall I ?

Many thanks for your reply Bugsy x

Well if you've only got a monkey as a balance then you'll be fine but remember many lenders don't like to much available credit so having this reduced is more of a positive.

miss_curly

ooooooo ... ok
looks like its all cushty then
many thanks Bugsy
x

Sheriffsam

This is very helpful info, thanks chaps!