Should I cut my credit limits

Rosco32

Hi guys, hope everyone is well. I'm sure this question has been asked a million times but thought I would ask for advice. I have a few credit cards and wondered if I should cut the limits down. I'm not particularly looking to apply for any credit right now, but would like to be prepared in case I do and to stand a chance of been accepted. I have the following cards/limits...

Barclaycard Platinum Simplicity
Limit £9500
Balance £0

Tescobank Clubcard Credit Card
Limit £9100
Balance £2290.18
This is currently on a 0% BT until July 2015 and will be closed once the 0% offer expires, after which I will be looking to transfer any remaining balance to a new 0% card if it is feasible.

Amex Platinum Cashback Credit Card
Limit £4200
Balance £761.31
Used for most purchases (for cashback) and paid in full each month

So I have access to almost £23k credit combined. What does everyone think?

Thanks :-)

stator

Personally I would, if you want a new card in the future I would close down one you're not using (Barclaycard) and reduce the limit on the balance transfer card to say £4-5k. Then when you apply for a new card they won't think you have too much available credit already.
I have no inside knowledge, this is just what I think. Some people disagree I'm sure.

babyboos

i'd drop Barclaycard altogether if you don't use it or need it why have it it will just go against you as available credit like you say and will preclude you potentially from new customer deals with them Reduce your Tesco card to 2500 for instance if do plan to close once 0% period finishes. maintain these two cards really well and this will show better on your overall credit score and when the time comes to get a new card number three will help you secure a new card easier

leeruddecology

I think that’s a large amount of credit you can access.

I think credit scores like high average age accounts. So if you close arecently opened card then it could help your average score. Likewise, if youclose one of your older cards over a new one, it will reduce the average age ofyour accounts and show your credit hungry?

Regarding reducing credit limit. If you’re not going for any new credit, Iwould just keep the credit limits as they are. If you don’t fully use them,then your utilization rate is lower, which is good for your credit score.

What you could do, if reduce credit limit on your Barclays credit card andtry and increase the Tesco one because its in the deal. This is what I did. Iuse my interest free CC for all bills, and instead of paying it off (minus minpayment) I save the money in a saving account. Making money for nothing. Or, ifI am honest I put it into premium bonds. Not won anything as yet :-(

Update. I was with natwest, and had two credit cards. You can only have twoCC with them. I wanted a new interest free deal, but I had to close one of myCC, and then wait for it to come of the system. This took about 2 months or so.It delayed my getting the new cc deal I wanted. Obviously there are otherproviders, but I got declined on one of the others (Sainsbury’s) and didn’twant to keep applying. I bank with natwest and therefore they know I am goodwith my money.

Rosco32

Thanks for the input guys. I've had the Barclaycard one for years and they send me offers every month, so thought I might hang onto this for when the tesco card 0% expires, and transfer any outstanding balance as it would save my having to apply for a new card but I'm only going to need a fraction of the limit. Once the tesco card is paid off or I've moved what's left (possibly to Barclaycard) the account will be closed, meaning my total combined credit will be approx £13700 assuming credit limits don't go up/down.

Do-the-right-thing-now

I personally would lower the limit on the Barclay's asap to the level where you still can move an outstanding balance. Out of own experience banks do look at the total available credit you have got. On all your cards set your limit below the 5K.

stator

ps if you phone up and tell barclays you want to leave they might offer you £50 to stay, according to other threads on this forum. I've never tried it.

planteria

i'm not sure i would reduce any...
but if they were the cards i had i would certainly keep the Amex card for my spending and keep the Barclaycard for repeat balance transfers. if i wanted to close the Tesco card i would do so, but keep the physical card to use as a clubcard for fuel, and then apply for an MBNA card when i wanted another BT deal.

[Deleted User]

Rosco32 wrote: »

I've had the Barclaycard one for years and they send me offers every month

I'd close the Barclaycard now and apply for a new Barclaycard in July. You'll probably get a much better balance transfer deal on a new card than as an existing customer. Have successfully done this myself before.

Hazzinho

Close cards you no longer require, if you reduce limits lenders have no idea if it's you or the lender.