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Credit rating and credit card allowance
mustachio
Posts: 83 Forumite
I have a credit card related question (I know, I know). I have credit card and the amount they will let me spend has extended from £2000 to £7000 (over about 5 years).
My question is would the extensions given by a credit card reduce your potential borrowing in relation to credit scoring, etc?
I actually have a very good credit rating but I am just wondering if it is worth reducing my limits back down since I am not using them and don't intend to :money:
Many thanks in advance.
My question is would the extensions given by a credit card reduce your potential borrowing in relation to credit scoring, etc?
I actually have a very good credit rating but I am just wondering if it is worth reducing my limits back down since I am not using them and don't intend to :money:
Many thanks in advance.
0
Comments
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It depends on many things - each lender is different.
On one hand, this limit demonstrates you can manage credit responsibly. If you are using and paying off in full each month.
On the other hand, if you wanted a loan for £10k then you are asking a lender to almost treble your lines of credit overnight.
So many other factors as well though it's never going to be a definitive answer.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
£7000 total credit limit on credit cards is quite low. Nothing to worry about at this stage.0
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