Warning - reducing my credit card limit damaged my score significantly

ses6jwg

Have had a Barclaycard for Yonks, had a balance of £2.7k with a limit of £3k. worked the balance down to £1.9k.

Decided to reduce my limit to £2k to resist spending on it.

Did pre applications a few months ago ready to transfer on end of interest free period and was getting limits of £2-3k.

Now Nationwide will only give me £500 and Fluid have flat out refused me.

I have also have a santander credit card with £3.1k limit (not used), a 123 credit card with £2k limit (cleared monthly) and an aqua card with £350 limit.

be warned.

lawriejones1

Do you not think that repeated applications for credit could have had a negative impact on your credit rating rather more than the small reduction in your credit limit?

Have you had any issues in the past (missed payment, other credit applications refused etc.)

It's easy to blame the banks and credit card companies in this, but sometimes you do need to consider their responsibilities in managing risks and lending responsibly.

ses6jwg

lawriejones1 wrote: »

Do you not think that repeated applications for credit could have had a negative impact on your credit rating rather more than the small reduction in your credit limit?

Have you had any issues in the past (missed payment, other credit applications refused etc.)

It's easy to blame the banks and credit card companies in this, but sometimes you do need to consider their responsibilities in managing risks and lending responsibly.

no missed or late payments

they were pre applications i.e. no credit score

anqet

ses6jwg wrote: »

Have had a Barclaycard for Yonks, had a balance of £2.7k with a limit of £3k. worked the balance down to £1.9k.

Decided to reduce my limit to £2k to resist spending on it.
.

Keeping credit card balances near the limit will damage your score. 1.9 out of 2k is too high. You should try to stay under 40% of limit on each card. I believe you were better off with 3K limit and 1.9K balance.

Ianise

anqet wrote: »

Keeping credit card balances near the limit will damage your score. 1.9 out of 2k is too high. You should try to stay under 40% of limit on each card. I believe you were better off with 3K limit and 1.9K balance.

I always reduce my limit down as I pay off... so maybe this is not the best idea going forward......

I did this yesterday as well!! Crap!

bigadaj

You-kip wrote: »

My credit score has stayed at a 1000 which is Super Excellent on all 3 CRAs since I can remember.

I think I'm up to 2000 personally.