Should I reduce credit limits on my existing cards before applying for a new card?

BeckyD79

Hi All,


I have two credit cards, each with limits of approx. £6k. One I use for every day spending, and pay in full each month, the other was used for a balance transfer which is now fully repaid.


The two cards I have currently do not offer me any cash or balance transfer options (without silly fees!), so I would like to apply for a new card.


I know which card(s) I am interested in applying for, but would like to know if I have more chance of getting them if I reduced my credit limits on the cards I have, or if it wont make any difference?


Many thanks in advance,
Becky

stator

Yes, they will say here's Joe Bloggs, we think he's good for £15k but he's already got £12k available so we'll offer him a card with £3k. It's not that simple but the basic principle is right.
I would say get rid of one card completely and reduce the limit on the other (unless you think you might need £6k on an everyday spending card.
You'd have to wait for your credit file to update with the closed account and new limit.
However if you've got a good credit history already and earn plenty enough you could just go ahead and apply. None of us can tell you whether you'll be accepted or not.

cos_2

Does anyone know a definitive answer? I doubt it.

My story.

I stopped working in 2011 and my income dropped to £14k pa. I retained my credit cards with a total available credit of £30k. My balances totalled £6k, mostly on 0% transfers. I had a personal loan balance of around £1k.

I thought I'd have a stab at another 0% card and applied to Santander earlier this year, fully expecting to get knocked back. No. They gave me a £1400 limit, which I happily used!

I would humbly suggest that you apply for the new card now, without any other changes. It's worked for me recently, and has always worked for me in the past when I was working.

Paully232000

Without knowing more about you it is hard to say.
For eg if you earn £12Kpa may be more difficult to get another than if you earned, £30K.
If you have missed payments, or the like it may be more difficult to get more credit,

All things being equal, just apply for the one you want and see what happens as one or two searches is not going to do you any harm. If you get knocked back twice, look a bit more into why you are getting turned down.