Automatically increased credit allowance

espoe1

Hello,

I have an account with Littlewoods and have been a good customer of theirs for years. Every now and again they increase the amount of credit available to me, to ridiculous amounts I'd never dream of spending. I always give them a call and ask them to reduce it.

However, we are currently saving for a house deposit and keeping our credit rating in the best shape possible. Will my actions in decreasing the credit amount be detrimental to my rating, or would the ridiculous amount of credit available to me actually work in my favour? I just didn't want any mortgage companies looking at this account to think that I'm too risky - as I can get into £10,000 worth of debt at any second.

Does anyone know what would be best?

Many thanks

pjread

Not easy to answer as different lenders will probably see it differently. So long as your available credit isn't "silly" I doubt available credit (with a history of sensible management) is a problem to most.

But it depends, 20k available credit on a 70k salary is no issue, on 30k is quite a lot, and on 15k is looking worrying. But that's just my opinion, although I hope a sane way of looking at it.

ValHaller

You are in a bit of a bind - having a credit limit reduced can be taken as a negative indication. Trimming the credit limit so that you use nearly all of the credit is also negative.

If it is early in your saving phase, I suggest to reduce the limit to double what you would ever spend and act to keep the limit at that level. But if you are near to putting offers in, let it go