Lloyds offered to increase credit limit - I declined - is it OK?

yessuz

So I was living perfectly fine with credit card limit at £4000.
This month I have used a bit more than usually, putting my balance to ~2500 and then my bank sent me the letter saying that they are increasing my limit to 6000 from the end of August.

Now, I do not want that, I do not need that. And in addition, at the moment I have MBNA card for balance transfer, with limit of £9000 (current balance is 0)

With current available credits, my utilisation ratio is under 20% and I see no reason to increase my available credit.

so I called my bank and said them - thank you, but I do not want my credit limit to be increased...

Did I do it correctly? are there any effects on credit score/rating etc?

binaryuniverse

Won't affect a thing.

bengalknights

It wont affect anything at all as its based on internal approval

yessuz

that's ok.

I wonder the lower or higher total credit limit and credit utilisation @~20% - does it affect anything?

[Deleted User]

Your credit limit is just one thing that lenders will take into account, so yes, it can have an impact.

There is no one answer to your question.

yessuz

I am asking because I will have to remortgage in November 2018 and trying to plan ahead, to have best available situation.

IMHO credit limit of 13K per 2 cards is more than enough and by the time I am planning to have all my balances at 0

[Deleted User]

Your limits are fairly low, so no problem accepting an increase. But equally, declining it isn't an issue.

YorkshireBoy

Are these your only two cards? If they are, then why do you need a £9K BT card if the largest balance you can run up is £4K?


How do the limits stack up against your income? If your income is, say, £20K, then £13K of limits could be an issue. If it's >£40K for example, then worry not!

yessuz

YorkshireBoy wrote: »

Are these your only two cards? If they are, then why do you need a £9K BT card if the largest balance you can run up is £4K?


How do the limits stack up against your income? If your income is, say, £20K, then £13K of limits could be an issue. If it's >£40K for example, then worry not!

yeah. This is my only cards.
I always was living the the single card with 4K limit, utilisation being around 500 or so, often - less, or 0. but had bigger purchase recently (on CC) totaling balance this month @ 2500 and then thought that if I will not cover whole 2.5K in whole (and I will probably not, because holiday season) I will have to pay interest. which in the end of the day might be in region of 100+/- or a bit more pounds. So transfer balance to 0% card looks like sensible way to do it.
and since MBNA offered like 40 months or so interest free balance transfer.. well - why not? they were more than happy and although I asked for 2500 - they provided 9K.

Total limit on both credit cards (13.000 combined) is less than 30% of my annual income.

MABLE

My limits are about £60,000 in total and I always accept any auto increase. However I am very sensible with my money and have never paid interest and I make them work for me. However the only exception is if I take up a promotional rate then I usually pay a fee. This can vary from 0.9% upwards.

yessuz

well that's the point. I think I am quite sensible, but for me, kind of, having less limit = less possibility to behave irresponsibly.

anyhow, I think I might accept lloyds offer to increase my limit later