Can you have too much available credit?

hufc2002

Is it possible to have too much available credit?

The reason I ask is that Virgin Money have written to me to say that they have reviewed my account and want to increase my credit limit by £4k to £10,300. The balance on this card is currently £760 which is also 0% as part of a BT.

I have one other credit card with Barclaycard with a limit of £6400 and I use this card for purchases and usually pay off in full every month. Balance on this card is currently £490.

I earn just over £22k and have a joint mortgage and the only other debt I have is a PCP with BMW.

I have the option to decline the credit increase with Virgin. What should I do? Does having too much credit available have any negative affects?

sweetilemon

I think it only matters if you are looking for other credit or loans like a mortgage. And obviously for fraud reasons it's best to keep it to a limit you need rather than excessive unused credit. That's as far as I'm aware yet, someone else might know better. Seems odd they've put it up so much automatically.

hufc2002

We are planning to move in the next 4 to 5 years but could be sooner therefore will be looking for a mortgage.

Am I therefore best of declining the credit increase?

asparagus1968

think it would have an affect on a mortgage application, as you would already have above £16,000available credit.
I'd ask for a 0% bt and put both balances onto one card then reduce limit to £2000 looking at your balances and seeing as you pay off monthly.

Ben8282

Don't decline it. They are offering it and the fact they have offered it will look good.
In 3 or 4 years time when you get round to applying for a mortgage rethink the situation then. You can always reduce the credit limit at that time if you feel it necessary.