Reducing credit limits

vacheron

There are a lot of contradictions regarding how your credit worthiness is determined by finance companies. However these are usually searched by people (like myself) who want to have the maximum chance of getting good card deals in the future.

• If you have too much credit, this could look bad as future lenders may consider that you could max them all out and then default.
  
  
• However, if you reduce the credit limit, this could be assumed by future lenders that the card company reduced the limit as they saw you as an increased risk.
  
  
• Also, if you reduce your limit, your available credit would reduce, but your credit utilisation ratio would increase. This can also be considered a bad thing, so you are damned if you do, and damned if you don't!

In your case though, if you aren't planning on taking out more credit in the future, I would just reduce the limits if it helps you sleep at night. But I would still keep a few £k extra on top as an emergency buffer.

Also remember that the credit card company are equally liable for any fraudulent transactions on the card, so you do have some additional protection there.

DuncanHart

https://forums.moneysavingexpert.com/discussion/comment/81924632#Comment_81924632

just this - was trying to be helpful and answer the questions posed to me.

DuncanHart

I have a high income and 0% chance of booking a world cruise !

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81924632#Comment_81924632

Come on, it's me you are going to pick on with the vast number of melodramatic posts we get every day here?

Point remains, irrespective of if it's an obsession or a just pondering, of what the motivation is for asking? My opinion remains that the status quo is the better position unless there is something very specific thats wanted in the near future and that could drive different behaviour.