Account Limits - Need Advice Please

kyleraven

Hi All , Newbie here

Right I need some advice. Im 25 and have a pretty decent credit rating.

My question is about account limits and what to do with them. First of all I have:

A Lttlewoods account with a £7000 Limit
A Next account with a £5000 Limit


The Littlewoods account has a Zero balance and I never use it and dont intend too. The Next account has about £200 balance on it which I pay off £25 per month. My question is should I cancel the Littlewoods account and should I reduce the limit on the next account??

Is having to much credit available to you bad for you?

Any advice would be much appreciated.

sourcrates

kyleraven wrote: »

Is having to much credit available to you bad for you?
.

in what way ?

What are you trying to achieve here ?

MFWannabe

kyleraven wrote: »

Hi All , Newbie here

Right I need some advice. Im 25 and have a pretty decent credit rating.

My question is about account limits and what to do with them. First of all I have:

A Lttlewoods account with a £7000 Limit
A Next account with a £5000 Limit


The Littlewoods account has a Zero balance and I never use it and dont intend too. The Next account has about £200 balance on it which I pay off £25 per month. My question is should I cancel the Littlewoods account and should I reduce the limit on the next account??

Is having to much credit available to you bad for you?

Any advice would be much appreciated.

Yes I would close the Littlewoods Account if you have no intention of using it anyway
Yes I would reduce the limit on the Next account


I assume there is a specific reason you are asking if too much available credit is bad for you?

kyleraven

Thanks for replying. Yes to be honest the reason for my question is , I'm having a tidy up of what I currently owe and have started saving for a deposit for a mortgage in years to come.

As I'm 25 i keep thinking having all of these unused limits may have a knock on effect if I were to apply for anything else like a credit card / new current account.

I take it that once an account is closed that had a positive effect on your file ???

sourcrates

kyleraven wrote: »

Thanks for replying. Yes to be honest the reason for my question is , I'm having a tidy up of what I currently owe and have started saving for a deposit for a mortgage in years to come.

As I'm 25 i keep thinking having all of these unused limits may have a knock on effect if I were to apply for anything else like a credit card / new current account.

I take it that once an account is closed that had a positive effect on your file ???

It's impossible to say with certainty, as every lender has there own credit scoring system, but I would say the less borrowing you have, or access to borrowing, the more attractive to mortgage providers you will be.

Of course that's only a part of it, paying bills on time, no late or missed payments, present on the electoral role, will all affect there decision as well.

Affordability is the main issue these days, lenders will look at how you manage your money, when making lending decisions.

Sanctioned_Parts_List

If you're not going to be applying for a mortgage within the next few months or 1 year, then just do what makes you feel comfortable. Different lenders want different risk profiles depending on their own financial position as much as yours, and trying to second guess what they'll be doing in a few years is a tall order.

More immediately, if it were me I'd close both of them and open a much cheaper CC with a limit of no more than 10% your net annual income, used sparingly. If memory serves, store cards normally charge 40% interest?

pennystretcher

If I was you, I'd close them...there are 0% spending CCs around if you really need the flexibility..

I review my credit limits on credit cards regularly (as they keep putting them up) and keep it in manageable level, but still enough if there is a real emergency. I have never had problems getting a mortgage, loan (only once though) or opening other accounts despite my credit limits being really low.

However, I guess it will depend the bank and their credit checks what they determine as a good file..