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Reducing Credit Limit
harj1185
Posts: 77 Forumite
in Credit cards
Hi all,
Wondering if someone could help me. Just called up MBNA as part of my Fluid Credit card on which I have a 0% BT until next year.
I asked to reduce my credit limit as it is now 2.5x (around £8k!) the amount of the outstanding balance as I've been reducing it.
However the lady advised me that this could have a negative impact on my credit rating as it will show that my credit has been reduced but not that I requested it!
I wanted to know whether this is the truth? There's a few Amex cards I have my eye on for the rewards so thought it would be better to reduce my current limit?
Any help would be appreciated.
Thanks
Wondering if someone could help me. Just called up MBNA as part of my Fluid Credit card on which I have a 0% BT until next year.
I asked to reduce my credit limit as it is now 2.5x (around £8k!) the amount of the outstanding balance as I've been reducing it.
However the lady advised me that this could have a negative impact on my credit rating as it will show that my credit has been reduced but not that I requested it!
I wanted to know whether this is the truth? There's a few Amex cards I have my eye on for the rewards so thought it would be better to reduce my current limit?
Any help would be appreciated.
Thanks
0
Comments
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Hmm, I'm interested in knowing this too, I thought it would have a positive reflection on your credit rating???0
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Could do in a way. Reduces your proportion of unused credit. Not such an issue unless you have cards that are 50% to maxed out.
7 years ago I reduced all my credit limits down to a fraction of what they had been, closed some cards and was suddenly rejected for all credit for over a year. Posted a big thread about it. This is related to the above.0 -
Sounds very credible, often the best suggestion is to wait until paid off then close down..0
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Sounds very credible, often the best suggestion is to wait until paid off then close down..
Often, but not always.
The below is my thread about the damage caused by reducing limits and closing cards.
https://forums.moneysavingexpert.com/discussion/1752340 -
Often, but not always.
The below is my thread about the damage caused by reducing limits and closing cards.
https://forums.moneysavingexpert.com/discussion/175234
Well thanks for the warning! They should make it a sticky!0 -
Reduction in credit limit always initially ends up having negative effect as it is seen by new lenders as a warning sign that your existing lenders may see you as a credit risk!!!.
The credit report does not show why the limit was reduced so there is no way for a new lender to know that you requested the reduction.:beer::beer::beer:0 -
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