credit card limits question

aliby21

I have very little idea about credit cards - I've a barclaycard which I've had for over 30 years always paid in full every month.  I am looking at applying for a 0% on purchase card to free up some cash for a few months (selling two houses to buy one, think we will end up one of us owning two for a while so might be a few months where I can't pay off balance in full).  My question is, is it a good idea to reduce my credit limit on the barclaycard before applying for a 0% one, to get a higher limit offered?   I've done the eligibility checker on my bank's 0% card and am 'pre approved'.  No mortgage involved with house purchase

CliveOfIndia

It won't make much of a difference - unless your combined available credit across all existing cards is many multiples of your income.  Yes, current available credit is one factor that's taken into account when a new lender assesses your application, but far more important is the amount of current debt you're carrying and your repayment history.

Reducing the limit on the existing card may even have a negative effect - a lender looking at your files will see that the limit has been reduced, but they won't know whether you requested the reduction or whether the card issuer forced it upon you due to financial mis-management on your part.

aliby21

Thanks Clive, that all makes sense.  I won't try and be too clever, will just apply for my bank's card.  Just trying to be frugal - every little helps as they say!