Will Reducing Credit Card limit effect rating?

StanVanDamn

I asked my credit card company to reduce my late recently and they came back with this advice:

"We are able to reduce your credit amount but be warned - other companies will not see why your amount was reduced you and this could effect your credit rating"

So I wanted to know if this is the case or whether they are doing this as a scare tactic to keep me with them. I want to reduce the rate to stop the temptation of using the card.

Thanks for your help

YorkshireBoy

StanVanDamn wrote: »

So I wanted to know if this is the case or whether they are doing this as a scare tactic to keep me with them.

But you're not leaving/planning to leave them?...you're simply reducing your credit limit.

It's true your CRA history will show the reduction in credit limit, however who made the decision is not shown.

Yes, lenders could guess that your provider lowered the limit as a precautionary measure...but why would they? Lending decisions are not based on guesswork!

There is one reason why you maybe shouldn't reduce it. And that's down to credit utilisation. If you lower it too far (worst case being just over your current balance) then you will appear over-indebted, ie maxed out.

I want to reduce the rate to stop the temptation of using the card.

I've never understood that approach. Just get some backbone!

Do you only keep one days food in your fridge to resist the urge to pig out? No, thought not.

You-kip

StanVanDamn wrote: »

I asked my credit card company to reduce my late recently and they came back with this advice:

"We are able to reduce your credit amount but be warned - other companies will not see why your amount was reduced you and this could effect your credit rating"

So I wanted to know if this is the case or whether they are doing this as a scare tactic to keep me with them. I want to reduce the rate to stop the temptation of using the card.

Thanks for your help

If temptation is a problem then IMO you shouldn't have a credit card.

The_Boss

You-kip wrote: »

If temptation is a problem then IMO you shouldn't have a credit card.

Agree with that completely