Is it worth reducing a credit limit?

PParka

Hi,
I have a Barclaycard that I keep as my "in case of emergencies" card.
I have a couple of other credit cards that I use for stoozing. (These will be cancelled once the 0% offers are over)

The Barclaycard currently has a £8k credit limit. As I don't use it, is there any advantage in reducing the credit limit to a lower amount? (say £3k)
Will this affect affect my credit rating?

Thanks

ShelfStacker_3

Having lots of credit available can make you less attractive to lenders, as they get the impression that since you're already not using 8 grand's worth of credit cards, then you won't use anything they offer you. So, it could well improve your credit rating if you reduce your limit and cancel any other cards you don't use.

daveboy

Or if recent events are anything to go by....Barclaycard may just either reduce it anyway or close your account.

Personally I think 'emergency' credit cards are going to be harder to keep as lenders latch on to those people that don't make them a profit.

YorkshireBoy

Your "in case of emergencies" fund is your stooz pot isn't it, not a standby credit card?

As a stoozer, if a card (and it's limit) isn't 'working' for you it should be closed down to enable you to secure larger credit limits on your other applications.

PParka

YorkshireBoy wrote: »

Your "in case of emergencies" fund is your stooz pot isn't it, not a standby credit card?

Thanks YorkshireBoy. It seems so obvious when someone else points it out. I don't need an emergency card....I've always got my stooz pot!

Bye bye Barclaycard.

itsnever2lateisit?

I spent over an hour on the phone yesterday trying to persuade the CC Co to reduce my credit limit, they where very reluctant, trying to put all sorts of obstacles in my way, and only relented when I suggested the limit be reduced to zero and close the account:p