Credit "limit" history on Noddle?

Barnsey737

Hi everyone,

First post after being a long term reader, thanks so much for all the fantastic advice over the years!

Surprisingly couldn't find a similar question on the forum so feel compelled to ask the following:

Excluding the issue of credit utilisation ratio, I wish to lower a credit limit substantially on my oldest card (with 0 balance) having just been accepted for a new card with a very high limit at a much lower interest rate, this will therefore show on my Noddle credit limit history section as going from years of steady increases up to 4k to a sudden drop to 1k or so, depending on what I want to lower it to.

Would this be seen as a negative for further credit applications i.e. mortgage, in the future?

Everything I have read only focuses on the negative impact of reducing available credit, thus increasing debt ratio. Nothing I have found so far has discussed the potential adverse affect of lowering a credit limit in terms of "was it the card holder's decision" or "did the lender feel it appropriate to lower the limit due to increased risk". Obviously this won't be stated on the credit file but could it be perceived by future lenders to be the case?

Hopefully that makes sense and at least one other here understands my dilemma, to be honest I wasn't going to change anything, just a little surprised at what I've been offered for the new card and debating whether to lower limits elsewhere.

Many thanks for any help/advice possible!

[Deleted User]

The answer is 'it depends'.

Lowering limits changes utilisation, as well as total available credit. Depending on your debts and income (as well as the rest of your credit history), this could be seen a positive or a negative.

All you can do is look at the wider picture - what 'sensible' view would someone take of your credit profile?