Credit Available on Credit Card v Reduce Limit

Makalu

Hi there

I am looking at improving my credit score. I have three credit cards at present. Each one has available credit to use. However on searching my recent credit score the only problem I had was that I had maxed out my borrowing. I am currently in the process of paying these cards off but the question is. Is it better to reduce my credit card limit as I pay? or does it look better on my file that I have more cards with available spend. I have reduced one credit limit from £6600 to £2500 but have a balance of £2400 so it looks worse than it was. Any advice would be greatly appreciated.

[Deleted User]

Leave your limits where they are.

mwarby

If you reduce while you repay, it might look like the credit provider was keen to reduce limit\risk, which won't help you credit worthiness

Makalu

Thanks for the tip. I have tried searching online for an answer to this one. I will leave them where they are and then check my credit score again to see if this makes a difference.

[Deleted User]

Don't check your credit score. It won't tell you anything as it doesn't mean anything.

Makalu

I dont understand that it can't mean anything. Can you explain please. Surely my score must mean something or there is no point having one or trying to improve it?

pcman1985

The scores mean nothing. It's something they sell to you so you try and increase the number by responsible use of credit. No lenders will see the score when they search you when you apply for credit.

OK then by the information given your free trial "score" from me is 486/999

Please pay me £10 in April and I'll update your "score" for that month. It's cheaper than Experian. Sound a good deal? Of course it's not. Just like the number they sell to you. It's rubbish.