Do credit limits affect my credit?

WifeandMummy

Hello, I have an account with VERY and over time they have gradully increased my credit limit and it is currently £7,250.00!! I have no intention of ever using anywhere near this amount and i wondered today if I should perhaps ask them to reduce the credit limit? At the moment I have nearly £5,000 of 'available credit' and I wondered if this would be affecting my credit file and also would other lenders see it and take it into account when considering an application? (not that i actually intend on applying for any credit but just a general query)

Thanks xx

ch3101

To be honest it's a bit of a balancing act.

Lenders look at how much credit you have a available to you. But with cards they also look at how much of your limit you've used. If say you had 7250 limit and never went above 1000 then they would see that you are using the cards responsibly and it would be a good thing.

You could however reduce the limit to 1250 and only ever use 1000 but that would potentially look bad to a lender.