Best Way Forward...

WifeandMummy

Hi Everyone,


Not sure if this is the right place for this post but I have an account with VERY, they are always increasing my credit limit without notifying me and its currently at £7, 500!! I have never ever been anywhere near that limit, or even half of it... anyway I am due to pay off my account balance this month and wondered what I should do about my credit limit. I have read online that reducing credit limits can affect your credit rating, is this true? does having a "large" limit but being no where near it show I'm "responsible?" I don't know whether to close the account, reduce the limit or just leave it as it is...


Thanks x

Sabbathdei

Having a large limit and not using it is generally the way to go with credit cards. Do they really increase it without notifying you, no letter or anything ? I suppose if you're not using it then you should close it.

happy_bunny_2

If you close the account it will look like settled credit. Which is good I think.

If you decrease your limit, I read on here the other day that it can look bad as it's not shown that you requested it. Just that a limit was reduced.

I guess it depends on if you gave other open credit accounts to look good on your report or if you are going to be applying for credit soon.