Lowering your credit limit

ryan121

I thought it would be a good idea as I was paying down my debt to lower my credit limit but I've been told that the limit I asked for would risk me going over the new limit. I can understand their point but I'm not adding anymore spending to my account so this would not happen.

I find it interesting there are plenty of rules and regulations on stopping credit limit increases and cancelling them but there seems to be none on reducing your limit which can help control spending.

It's frustrating a credit card company can just block it when you're trying to do the sensible thing.

[Deleted User]

They need to ensure you don't go over your limit, so they won't let you get too close. They don't know that you won't start spending.

Just remember that your limit isn't a target. If you can't control your spending, then cut the card up.

In either case, you would be best to keep the limit, to demonstrate to lenders that you can handle credit.

ryan121

This is my problem, if I have available credit then it's tempting to spend. I will try again once I have more paid off but it's far more helpful to me to see a lower credit limit.

I've never gone over a credit limit so it works for me.

[Deleted User]

Just cut the card in half so you won't use it and keep paying as much off as you can.

ryan121

I already have, just thought it'd be easier to lower my credit limit as well.

18cc

One option would be to apply for a new credit card and ask for a low limit one that you are happy with once you have been accepted then cancel the existing credit card

ryan121

I could do that but to be honest I just want to pay this off, close the account and never get a credit card ever again. Think that's best for me.

ryan121

Just as an update to this I was originally trying to reduce it by £500 so tried £200 instead and that was accepted and updated the same day. I'll try and reduce it by £200 every month. A lot happier now I know it's actually possible! :j

System

You really shouldn't use your credit limit as an "emergency brake" on your spending.
Cut up and bin the card.

ryan121

People keep saying that but I don't see why not as it works.

The fact is a lot of people will spend up to their limits if they are available. You can cut up your card but you can easily order another one as well.

I have had credit cards for years and never went over the limit. There's still a large gap between my reduced limit and my balance. I don't know about others but the balance and credit limit going down at the same time is helpful to me.

System

ryan121 wrote: »

People keep saying that but I don't see why not as it works.

Because it suggests the wrong (and dangerous) mentality for a credit card.

It should be any difference what so ever to your spending if they offer you a £1000 or £100000000 credit limit. It shouldn't affect your spending on the card. Thats what people are saying.