decreasing CC limit is it worth it??

mstar

Hi people,

i am going to move house soon, and apply for a mortgage, i have 2 credit cards (1 with my balance trasfer and 1 just used for emergency etc) i was thinking about reducing my credit limit on both so i be more attractive to lenders, my question is reducing my credit limit will that have any effect? and do they do any credit scrore checks REDUCING my limit on both cards??

any help much appreciated

i have 12k credit limit on 1 card and 15k credit limit on the other card

YorkshireBoy

In my experience, lenders are more concerned about your commitments, ie used credit.

They're not (as?) concerned as to what you *might* go out and spend tomorrow because they have the security of your house should you default on your mortgage payments.

mstar

so there be no point decreasing my credit limits??

YorkshireBoy

For the definitive answer, you'd have to ask a lender or two what their policies are (but personally I wouldn't bother reducing my limits).

For example, Yorkshire Building Society's policy is to ignore available credit. They do, however, reduce your quoted salary by 36% of your debt (12 months of 3% minimum payments) before applying their lending multiples. So, if your salary is £20K and you have £10K of debt, they'll use a salary of £16,400 for their affordability calculation.