***** Solved ******Lower my Credit limit for a better rating?

lifearoundhere

***** Solved ******
Hi All,

I have a decent credit file and am thinking about improving it. I've done and followed all the bog standard advice over the years. However I have recently taken out a new cash back credit card (limit: £4800) and I'm wondering whether to lower the limit on an old credit card (limit:£1600).

My reasoning for this is that my old card is the oldest financial account (3 years +) I have. Therefore I don't want to close it (for the obvious reasons). I don't plan/need to use the old card anymore. But due to my tendency to switch around for the best deal since Uni, I feel that the limiting factor on my attractiveness to lenders is my 'account stability'. i.e. the years I have been loyal to a single lender.

Has any been in the same boat, or know something I don't?

***** Solved ******

[Deleted User]

Your limits are low.

Leave them.

[Deleted User]

Why lower it?

The lender may question this and also it will show in your credit file as the limit has been lowered.

What are you trying to improve?

If you mean your "score" then ignore it

lifearoundhere

TBH nothing in particular, more just a tedious pursuit of min/maxing my attractiveness to lenders. I know what I spend so if my total available credit was 5K my Credit utilisation would only be 25% on average. Which should look healthy.

But I get your points, Gary & zx81.

PixelPound

If you lower it, will it be seen as removing temptation in that you don't feel you can trust yourself with not using available credit? Also as has been said, they are low limits. If you have only the 2 cards the total avail credit is low. When your available credit is a lot more than your annual salary, then you can be concerned, but I don't think if it's only a fraction you need to worry.Also don't forget utilisation - the old card will help your utilisation look lower than if it was lowered.

shortcrust

The CRAs really have done an excellent job of making people think they need to be always doing things to improve their 'score'.

lifearoundhere wrote: »

TBH nothing in particular, more just a tedious pursuit of min/maxing my attractiveness to lenders. I know what I spend so if my total available credit was 5K my Credit utilisation would only be 25% on average. Which should look healthy.

But I get your points, Gary & zx81.

It's an impossible goal. Lenders each have their own criteria so what might make you attractive to one could make you less attractive to another.

lifearoundhere

Thanks All, Got my answer. Will leave things as is.