Should I increase credit limit for better credit rating?

EmmaR69

I reduced my credit limits on my 3 0% interest credit cards thinking it would be better for my credit rating to have less credit showing. But I think this has made it worse... maybe because I now have higher percentage of credit amount used up (even though amount of credit is the same ) . Should I have left them high (even though I don't need it)  to make better credit rating? I guess I could put the credit rates higher again.  Any advice please?

[Deleted User]

Higher limits generally tell lenders that others trust you.  Your CRA credit rating will fall, but you'll probably find it easier to get credit.

The exception would be if you have a very low income.

DCFC79

Credit rating may drop just like the share prices of companies have due to corona virus or it could go up but why dpes it concern you since only you can see it, your history is what is used on loan aplicatoons etc.

mwarby

The risk in dropping limits is that nobody looking at your credit history can tell if the bank reduced them, or if you asked for them to be reduced. If a bank is concerned about your ability to repay it may reduce your limit to reduce or eliminate new spending (reducing risk). If other banks notice this pattern they may conclude that all is not well and rate you a higher risk, leading to lower limts and higher rates being offered

EmmaR69

Should I put them back up ?

[Deleted User]

You could ask - they may not agree, especially if they do a credit check and see that your other limits have all been lowered.  However, most will just do an internal check.