Any problem having a higher credit limit than needed?

kuepper

Just got a Hx clarity card which i'm only going to use abroad on hols. Hx have given me several £000s limit when I was only thinking of £1000. I'm never going to spend £000s but i wondered if there's any downside of having a high limit?

YorkshireBoy

High available credit, in relation to your income, could affect acceptance for other credit cards and/or overdraft facilities.

If you do get accepted, it will almost certainly affect the credit limit offered elsewhere.

knightstyle

Hi again YB, where is this from? My Barclaycard which I have had for over 30 years has a limit of about 2.5 times my annual income from when I earned mega bucks but this was over 20 years ago and I have never had a problem with credit. However I have never missed a payment on any card or other loan.

YorkshireBoy

knightstyle wrote: »

Hi again YB, where is this from? My Barclaycard which I have had for over 30 years has a limit of about 2.5 times my annual income from when I earned mega bucks but this was over 20 years ago and I have never had a problem with credit. However I have never missed a payment on any card or other loan.

Does the account appear on your CRA files? I have a high limit YB card since the late 80's/early 90's (when, prior to the 1998 revamp of the DPA, many banks only reported negative account conduct) that doesn't appear on my file.

reclusive46

knightstyle wrote: »

Hi again YB, where is this from? My Barclaycard which I have had for over 30 years has a limit of about 2.5 times my annual income from when I earned mega bucks but this was over 20 years ago and I have never had a problem with credit. However I have never missed a payment on any card or other loan.

Haha, I have a card like that with Amex.

I wish I had a decent credit limit on Clarity though.

CKhalvashi

I'd rather have it available if I need it, than not have it.

Unless you're applying for something else, it shouldn't be an issue. If you're spending £1000 a month, it may be an idea not to dip below £4000, for debt utilisation limits.

CK

BugsyBrowne

kuepper wrote: »

Just got a Hx clarity card which i'm only going to use abroad on hols. Hx have given me several £000s limit when I was only thinking of £1000. I'm never going to spend £000s but i wondered if there's any downside of having a high limit?

The £4200 credit limit you got on the Halifax clarity is defiantly worth keeping.

Although it's not mega high it's still a nice limit & a decent card.

InsideInsurance

Future potential credit providers like it when others are trusting you and giving you high limits and so if you have £20k of available credit its better to have that in 2 cards of £10k each than 10 cards of £2k each.

That said there is an affordability consideration which may be an issue depending on your total available credit & other expenses -v- income

If I was wanting to manipulate my score then I'd look to keep the high limited cards and close the low limited ones