Deciding on a credit limit

DD265

MBNA must think I'm about to pay off my card in full (they're not wrong; it'll be clear before November) as they've offered to increase my limit from £8,100 to £10,500.

I'm not sure I'm comfortable with such a high limit, but I have no intentions of using it, and infact was planning to drop the limit to £5k once it's paid off, to match my other card. Will then put food/fuel on them and pay off in full each month. Between our emergency fund and two £5k limit credit cards, I feel like we have all the bases covered.

I know we don't always get a say, but how do you decide what the right credit limit is for you? Where do you draw the line?

[Deleted User]

For me its not about the limit but the balance, but if you feel more comfortable with a 5k limit then thats what you tell them you want.

boo_star

DD265 wrote: »

MBNA must think I'm about to pay off my card in full (they're not wrong; it'll be clear before November) as they've offered to increase my limit from £8,100 to £10,500.

I'm not sure I'm comfortable with such a high limit, but I have no intentions of using it, and infact was planning to drop the limit to £5k once it's paid off, to match my other card. Will then put food/fuel on them and pay off in full each month. Between our emergency fund and two £5k limit credit cards, I feel like we have all the bases covered.

I know we don't always get a say, but how do you decide what the right credit limit is for you? Where do you draw the line?

If you don't want such a high limit, just decline the increase.

Nebulous2

I don't interfere with it at all, simply take what I get, as I'm concerned at unintended consequences, such as lenders assuming your credit-worthiness has dropped.

boo_star

Nebulous2 wrote: »

I don't interfere with it at all, simply take what I get, as I'm concerned at unintended consequences, such as lenders assuming your credit-worthiness has dropped.

I definitely wouldn't drop my limit for this reason.

cymruchris

If you can trust your own spending habit, and manage your credit cards responsibly - does it matter if the limit is £5k or £50k - it could be £500k - and you'd still not abuse it - it's just a figure on a piece of paper for those that look after their accounts. I'd only ask to drop it if there was a risk I might go out on a spending spree.