Decreasing credit limit. Good or bad thing?

Stavros1110

So I've 2 credit cards balance on one is £2700 and other is £700, I try to pay as much as I can each month but always have to use them towards end of the month so there always close to limit. I decided to consolidate the debt as I would never be able to pay it down even if I was to switch cards to a 0%. I plan on keeping the card with lower limit but was going to reduce the limit. Is this a good thing to do? I thought it would improve my credit rating but some quick research says it could have a negative impact on my rating. Any advice much appreciated

[Deleted User]

Your limits are very low. Keep them and accept any increases offered.

Don't show lenders that no one trusts you with even small limits.

cymruchris

Lowering your limits through your own choice won't be shown on your files - it will only show that the limit has been reduced. Other lenders look at the data - and they'll not know it was you, but will likely believe that your providers are cutting your credit lines - so it could spook them. Better to keep your limits and not use them wherever possible. Have you checked your eligibility for a zero percent balance transfer? I ask as you mentioned that you were often close to your limit and regularly - that can be a red flag for a new card provider. (It's best to check eligibility on the banks own website - as comparison websites aren't very accurate at guessing)

Dandytf

OP Also remember if you Manage any lower utilisation well, then requesting lower limit/s isn't Always negative as such.