Biggest risk factor - high available credit or debt to credit limit?

Wammer

A month ago the credit limit on one of my cards was slashed by the provider by 90% to my horror. I have had credit cards for over 30 years, have never had a late payment nor gone over my limit in all that time.

Long story short, it may have been due to my credit file showing I was carrying a balance on two other cards. I appealed against the change, explaining that I was only carrying a balance because I had 0% balance transfers. My credit limit was immediately reinstated.

One month on and a different credit card provider has written to say they are increasing my credit limit. This is one of the 0% BT cards and I don't need an increase, I was actually going to ask for it to be reduced to reduce my available credit after the scare with the first provider.

I currently owe a balance of 60% of my credit limit. If I accept the increase it would be 52% and if I reduced it it will be 85%.

I can't decide whether providers see a high available credit limit or a high debt to limit as more risky.

I don't want to risk having my credit limit reduced on this card again due to the benefits it has over other cards.

[Deleted User]

The only real answer is 'it depends' and varies across lenders.

It's also not just the percentages but the numbers themselves that can be taken into consideration.

Anthorn

The way I look at it is that credit cards are in competition with each other and if it is the credit limit itself which is taken into consideration then it would be dead easy to eliminate the competition: Just hand out high credit limits. So I would say that it is more likely that the total credit limit used (debt) and not the overall limit which is considered.

But as previously stated it depends on the lender: Some do and some don't, some will and some won't, etc. etc.