Can catalogues lower your credit rating or...

xsupercarlx

..make you look more undesirable (To a creditor, not the opposite sex)


I'm asking because I have a Next account, I paid ('Paid', because I no longer owe anything) on time and they have gone and increased my Credit limit to £900 which is something I don't want or need, I only use the online service when I cant be bothered to go to the shop.

Now if I was to apply for a Loan for a car, would my bank see that I have £900 worth of credit available with Next and decide to lower the amount they would have lent to me?

RichL74

They would see that you have an an account with Next, they wont see how much that account is worth.

Curr946

RichL74 wrote: »

They would see that you have an an account with Next, they wont see how much that account is worth.

yes they will, credit limits are shared with CRA so that other lenders can assess the risk of customer using all lines of credit and not being able to pay min payments.


OP, if you dont want/need the limit you can ask next to reduce it. However, if this is the only credit line you have i would leave it in place for the time being.

UsetheFORCE

I have a NEXT account with a £900 limit, I certainly don't need it but will currently leave it at that level/open as it looks good that you are trusted with a high limit but not using it.

I am building up my credit and now I have 3 credit cards...once the limits increase on them, I will look to get rid of the NEXT account...

So whether to cut it down/close depends on what other lines of credit you have available..

My oldest account is a catalogue which I intend to keep open, making an occasional purchase.

RichL74

I must be getting confused then, sorry.

xsupercarlx

Thanks guys, I think ill leave it then.