Lower credit limit?

Finchy2018

I have just moved and bought some kitchen appliances on my credit card. I decided to apply for a 0% balance transfer card to pay these off over the next few months as although I have the savings, it would be good to keep this in my ISA. The balance is 800ish on a 3k limit and I'll close the card once the transfer is complete. Tescos aaccepted me and gave me a limit of £11,500! :eek:

I'm not tempted to spend it and once cleared will use for petrol or similar but would there be aný negatives to lowering the credit limit? Do I just keep it as it is?

Ben8282

Do NOT lower the credit limit on the new card.
Do NOT close the original card.
Why do you want to close the original card? To leave yourself with only one card with the BT on so that you are charged interest should you decide to use it for a purchase? Why not use the existing card for petrol or similar?

Finchy2018

I was only going to close it as I have 3 other cards so just don't need that many. My available credit just seems very very high. But currently the only balance is the 800.

Ben8282

What is your total available credit?

Finchy2018

25k with the new card added so 13.5k without

[Deleted User]

Your limits aren't very high, especially over four cards.

I'd keep it, unless your income is low and you're going to be needing additional credit imminently.

Finchy2018

My income is 30k so not massive, but I have 60k in savings so don't see myself needing access to credit. I more use credits cards for the protection and 0% interest

Terry_Towelling

Perhaps coming in at a bit of a tangent here, but my view on credit cards (FWIW) is that you should use them for absolutely everything you can (regardless of whether you have the cash to pay up-front) and then pay in full by direct debit each month. Leave your own cash in the bank for as long as you can. Treat your credit card like a 'pending' transactions list that has a nice long deferral period before you actually have to pay them.

Chargeback (also available on debit cards) and S75 protection are obviously good things but the main reason for using credit cards is convenience and getting that extra month's deferral before paying. That extra month can be used as a 'cushion'.

Try not to mix BTs and daily spending though and make sure you are disciplined.

Verityspinelli

Terry_Towelling wrote: »

. Treat your credit card like a 'pending' transactions list that has a nice long deferral period before you actually have to pay them .

I like this a lot, it’s a good way of thinking of it.. :j

Finchy2018

I hadn't thought of it in that way and I'm not tempted to overspend or use the cash in my bank. And the different cards would allow me to keep budgets in line (separate card for petrol/food/etc) I think I will give that a try.

My mentality has always been it's at x % interest so don't use it but if you pay in full which i usually do that doesn't come into it. Thank you!