Is having a high limit on credit cards bad?

um85

I'm wondering if its bad to have 2 credit cards with a high limit (e.g 15,000 each)? The balance is paid off in full monthly, but I'm just wondering if this can affect getting a loan/mortgage or if its not a worry.

jonesMUFCforever

It depends - if you pay off the cards in full you should not have to worry - but some lenders might think that you could rack up £30k of debt in a short time.

um85

jonesMUFCforever wrote: »

It depends - if you pay off the cards in full you should not have to worry - but some lenders might think that you could rack up £30k of debt in a short time.

Thats what I was thinking would be an issue, but hopefully the fact that I've never had a missed or late payment ever would be a plus. I was asking as one of the cards sent a letter that they were going to raise the limit, im thinking of calling and saying not to.

SLZ

um85 wrote: »

I was asking as one of the cards sent a letter that they were going to raise the limit, im thinking of calling and saying not to.

Barclaycard? They're obsessed with high limits and hand them out like no tomorrow.

I would say that as you've got £30,000 in limits that is both a positive and a negative, a positive in the sense that you're clearly creditworthy but a negative in the sense that you can accumulate high debts at the snap of a finger.

um85

SLZ wrote: »

Barclaycard? They're obsessed with high limits and hand them out like no tomorrow.

I would say that as you've got £30,000 in limits that is both a positive and a negative, a positive in the sense that you're clearly creditworthy but a negative in the sense that you can accumulate high debts at the snap of a finger.

Thats one of them yes, and Lloyds is the second. Surprised at the Lloyds one as I remember when I first got my card with them it was like pulling teeth to get a high enough limit to go to McDonalds and Starbucks all in one day. :rotfl:

I suppose it could be both positive and negative. I guess I should reach out to my mortgage advisor to see what he says. Just wanted to get a sense of what other peoples experiences were.

adindas

um85 wrote: »

I'm wondering if its bad to have 2 credit cards with a high limit (e.g 15,000 each)? The balance is paid off in full monthly, but I'm just wondering if this can affect getting a loan/mortgage or if its not a worry.

If you do not take advantage of having two 15,000 limit each. As you also confirm that you clear all of your balance each month, there is no point to have both credit card with high limit. One credit card with reasonable high limit is enough.

You will never know what the potential lender is thinking, even your mortgage adviser will not have the definite the answer. Rather then speculate, it is probably better to ask to reduce the limit of one of your card as you are not taking advantage of having both with such limit anyway.

Paul_1977

How does one get such a limit? What do you have to earn?

Butti

With a high limit technically there is the opportunity to go on a mad spending spree or for someone to nick your card and do it for you.
Maybe ask yourself how much you need?
Having said that, if you reduce it too much you then usually can't increase it again for six months.

Doctor_Duke

I think that Experian would indicate that having a high limit is a positive marker to lenders. When it comes to a Mortgage it's the debt you have on them that's the issue and in your case, that's none if paid off. Also do consider that lenders like a good payment history and you being able to manage debt responsibly and I think this would be overall positive for you.

tripled

Paul_1977 wrote: »

How does one get such a limit? What do you have to earn?

With my Barclaycard they just doled out increases at regular intervals. I was up to 13k before I told them to reduce the limit to 3k. They never asked what I earned before increasing it.

Sealtainn

I've had my Barclaycard for 7 months and asked for a limit increase online. I put in how much I wanted (raise it by £1,700) and they said "Yes, ok" and it updated instantly