Does decreasing your credit card limit put another search on your file?

JustAnotherSaver

I read that applying to increase your limit does, but what about decreasing your limit?

izools

It varies.

Requesting an increase doesn't always, depends on who the account is with and whether your account conduct alone is enough for the computer to authorise an increase.

Same with decreases. Most organisations just decrease and no search left. Some will take a decrease as a request to cancel the limit and apply for a new lower limit but again this doesn't always necessitate a search.

Is it an overdraft limit or a credit card limit?

JustAnotherSaver

Credit card limit.

It's with Santander - their 123 credit card. They've given us (joint) a limit of £2,500 which we don't need. You get cashback on fuel & supermarket spends (we don't hit their department stores), so we don't need a £2,500 limit at all. £500 would suffice as it's just to earn the cashback.

I had one a couple year ago & made my £24 back plus another £100-£200 on top. I only ever used it for qualifying cashback transactions.

[Deleted User]

It shouldn't leave a credit search and, even if it does, one search isn't going to do you any harm.

However, even if you don't need the £2500, you don't have much to gain by reducing the limit. Having unused credit isn't a bad thing (unless we're talking about many thousands of pounds). It shows that you have access to credit but that you are managing it responsibly.

I'd just leave it as it is unless you have a reason for wanting to reduce it.

MoneySaverLog

I would be more concerned about the limit history showing a decrease than a extra search showing up on my file personally.

Effectively a double whammy

JustAnotherSaver

MoneySaverLog wrote: »

I would be more concerned about the limit history showing a decrease than a extra search showing up on my file personally.

Effectively a double whammy

Does it not go on file that i requested the decrease? Or just that it's been decreased?

guesswho2000

JustAnotherSaver wrote: »

Does it not go on file that i requested the decrease? Or just that it's been decreased?

Nope, just the new limit and that the limit has been decreased. On the up side, lenders don't know either way, so it's neither good, nor bad.