Credit card with high limit, stay or reduce?

edited 30 November -1 at 1:00AM in Credit Cards
17 replies 2.4K views
lanceuppercutlanceuppercut Forumite
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Part of the Furniture Combo Breaker
edited 30 November -1 at 1:00AM in Credit Cards
I have an active credit card with Natwest which ended up with a rather high monthly limit (£14k, lol?) but I ended up not using it over the past 3 years as I had gotten a Halifax card with a much lower limit which I used for travelling as there were no overseas fess, but as I was with Halifax, I ended up using it more and more.

I've recently switched back to Natwest for my current account so will end up keeping the Halifax one purely for travel purpose and back to Natwest for any day to day stuff but even then, I'm using my debit card more and more to pay for things to not need to pay up a bulk amount at the end of each month.

Does having a high limit have any negative impact on any credit scores or anything?

10 years ago, I used to be in a bad situation where I was always maxed on it and Natwest kept increasing it and frankly it had grown to a point where I was badly in debt, as a teenager, that was a bad part of my life and needed help out of that and clear the debt.

Now, I'm a responsible adult and that situation won't happen again but is there any point to having a card with such a limit when I'm never going to need that?

I'm looking at buying a house soon so don't want any negatives when it comes to credit reports.
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Replies

  • MallyGirlMallyGirl Forumite, Board Guide
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    it is swings and roundabouts.
    Having a high limit is a plus as it shows that someone is prepared to offer you that much. Also, if is is empty, it means that your percentage use of credit will be low.
    On the other hand access to credit will be taken into account during affordability checks for a mortgage.
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  • zx81zx81 Forumite
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    I have an active credit card with Natwest which ended up with a rather high monthly limit

    It's not a monthly limit. It's a total limit.

    Keep it.
  • lanceuppercutlanceuppercut Forumite
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    zx81 wrote: »
    It's not a monthly limit. It's a total limit.

    Keep it.

    Yeah oops, total limit, not monthly!
  • lanceuppercutlanceuppercut Forumite
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    MallyGirl wrote: »
    it is swings and roundabouts.
    Having a high limit is a plus as it shows that someone is prepared to offer you that much. Also, if is is empty, it means that your percentage use of credit will be low.
    On the other hand access to credit will be taken into account during affordability checks for a mortgage.

    So, is that overall a good thing or a bad thing in your opinion?
  • Nebulous2Nebulous2 Forumite
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    So, is that overall a good thing or a bad thing in your opinion?

    It's a bit of both. My own view is that lenders like stability and no surprises. I wouldn't change anything, other than possibly paying down debt, before a mortgage application.
  • Ben8282Ben8282
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    14K is not a particularly high limit and will show that Natwest trust you with this limit. I think it would not be a good idea to reduce it.
  • lanceuppercutlanceuppercut Forumite
    55 Posts
    Part of the Furniture Combo Breaker
    Nebulous2 wrote: »
    It's a bit of both. My own view is that lenders like stability and no surprises. I wouldn't change anything, other than possibly paying down debt, before a mortgage application.

    Okay thanks, all my debt other than monthly outgoings are all paid off, I'm almost ready for my mortgage application!
  • lanceuppercutlanceuppercut Forumite
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    Part of the Furniture Combo Breaker
    Ben8282 wrote: »
    14K is not a particularly high limit and will show that Natwest trust you with this limit. I think it would not be a good idea to reduce it.

    My only worry is someone getting hold of the details and going on a £14k spending spree but thinking about it, most banks are quite good with fraud detection and I tend to use Apple Pay for everything so it's only on a few places that I have my actual credit card details entered.
  • zx81zx81 Forumite
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    It's also not your money they would be spending.
  • SystemSystem Forumite
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    Ben8282 wrote: »
    14K is not a particularly high limit and will show that Natwest trust you with this limit. I think it would not be a good idea to reduce it.

    14k IS a relatively high credit limit.
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