American Express want to increase my credit limit

w00519772

American Express have written to me advising me that they want to treble my credit limit to 12K (from 4K). I spend about £700 PCM on my credit card and always repay it on time. I also have a Tesco credit card and spend about £25 PCM (the credit limit is 2K). I also always pay the Tesco credit card on time. I believe I have three options with American Express:

1) Do nothing and receive the increase to 12K
2) Ask to remain at 4K
3) Ask to reduce to 1K or 2K

I read somewhere that having a lot of credit that you don't use improves your credit worthiness with the credit reference agencies as it shows that banks want to lend to you but you don't need it. I would be interested to hear thoughts.

[Deleted User]

Take it. If you use it you do. If you don’t you don’t.

Don’t take a reduction - it makes you look like you can’t be trustworthy being given credit

stevenhp1987

So long as you won't go on a shopping spree and max it out, I'd take the higher limit.

It might come in handy when you want to buy a new car, an expensive holiday etc. as you can collect points/cashback and then pay off in full.

I agree with !!!, if you lower your limit, it could be seen by other lenders that you were not managing and had your line of credit cut.