Credit card limit too high??

Mammamonkey

My credit card limit is way higher than I need on a month by month basis - I normally use less than 20% of the limit, and I pay off in full every month.

I'm a bit worried that if anyone stole my card details they could fraudulently spend much more than I normally would, and I'm trying to decide whether I should reduce the limit so that it wouldn't be so much of a problem if something like that ever happened? I can't ever imagine spending that much without planning, but I guess it might be helpful if we ever had an emergency. I'm not sure whether reducing it would affect my credit rating?

Anyone got any advice?

Cheers.

Jaywilz

The reduction in credit limit will affect the amount of available credit you have and also affect the % of available credit that you are using which could be seen negatively.

If you do have any fraudulent activity on your account some banks/building societies (cant speak for all) will stop your card if they see unusual activity on the account.

I cant advise as im not in a position to do so but i would say that have a look at the % of your available credit your using and see if a reduction in credit limit is the best thing. Also remember that you not guaranteed to get the same limit again if you reduce it and needed to spend more.

Hope that was helpful

sfax

It's a credit card, so if someone steals money and you aren't negligent, you're not liable. Check your statements regularly and don't reduce the limit