Card Closed+ Limit transferred => Credit Score?

wirelessapple

Hi All

I am a newbie and this is my first post on this useful website. I have several credit cards and was thinking to cut down the admin and make the life bit simpler.

So as a first step i called RBS with whom i have 2 credit cards. I asked them to close my 1 credit card and transfer the limit to other one which they did without any hassle.

PS: I didnt had any outstanding balance on both of them.

My question is, would that effect my credit score in any shape?

Normally it is advised that one should not close the credit card even he/she is not using it as decrease in total credit limit will increase the % of used limit which is a -ve point for credit history.

But as you can see the i manage to close one card and total limit also not effected --- so have i played it safe?

I hope some expert people can share their experience or shed some light on credit score.

Thanks
Wireless

[Deleted User]

It depends on your income (as your available credit will be measured against that). If you are not carrying any balances, then you may not want a lot of available credit open to you.

wirelessapple

Deleted_User wrote: »

It depends on your income (as your available credit will be measured against that). If you are not carrying any balances, then you may not want a lot of available credit open to you.

What do you mean depends on your income, kindly elaborate. There hasnt been any change in income. I have read on many websites that one should not close unused or low limit credit cards etc.

[Deleted User]

If you have a lot of available credit, and apply for more, a lender will consider whether you would be able to meet repayments if you maxed it all out.

Keeping accounts open is fine, but there comes a point where the cumulative credit will worry lenders, either new or existing.

wirelessapple

Thanks. Just wondering is there any general rule that how much one could borrow as % of his/her income??

[Deleted User]

A general rule of thumb is that lenders will get nervous if you have more than 50% if your income in available credit. Thought it can vary widely.

InsideInsurance

Every lender is different and have their own rules/ preferences.

As your total available credit remains the same but you have now got it spread over less lines of credit most will be either neutral or slightly in favour of the change once its reflected on the CRAs.

Given how slow banks can be with these things then there is a small chance that for 1-2 months you may have both the higher limit showing but the old one not showing as closed yet in which case the total available credit would be higher which may damage your standing depending on how affordable the total debt is -v- your income etc