Does reducing credit limits on credit cards look bad to mortgage companies?

Blodwen5

I will be remortgaging this year so I need to make sure my credit rating is spot on. I'm presently stoozing so have debts on newish credit cards which I'm planning to pay off soon. My dilemma is I have a credit card which I've had for 8 years, so good history, with nearly £9k credit limit that I don't use at all - do I keep it because it shows good history and perhaps ask for the credit limit to be reduced or do I close it to reduce the credit available to me? I was thinking of keeping a couple of the new ones because I still have interest free available to use after I've remortgaged. I'm not sure which option would look most favourable on my credit file? Close the long term card or keep it? Does reducing credit limits look bad??

[Deleted User]

Depends on your income, debts and limits.

But I wouldn't take any action within 6 months of a remortgage.

Blodwen5

Thanks for your response. What 'action' do you mean? I'll be remortgaging in 8 months therefore I'm tidying things up/closing surplus credit a/cs in the next 8 wks and then just keeping one or two credit cards open and paying off in full each month to keep things steady, and not opening any new a/cs. That's my plan anyway!

[Deleted User]

Blodwen5 wrote: »

What 'action' do you mean?

Reducing limits and closing/opening accounts.

System

Deleted_User wrote: »

Depends on your income, debts and limits.

But I wouldn't take any action within 6 months of a remortgage.

I disagree totally.

If the OP has other cards, with decent credit limits, then I don't see any benefit in a 9k credit card sitting there. 6 months is long enough for it to be listed as settled on any credit search.