Does it look bad to request lower limits?

itsgototstop

I've just managed to clear my card debt, and on 3 of my cards with high limits I have requested lowering limit to 10k each
I didn't want to cancel them and was planning to lower gain but one of my friends said credit card companies look poorly on this?

They all agreed instantly over the phone but wondering if I should stop doing this?

Does anyone know

skyrider007

It's fine! And it keeps you in control of your spending limit.

itsgototstop

Thank you, my friend said it made it look as if I was in difficulty financially, but thanks to this site over the last 2 years I have cut back on crap, saved a fortune and now live within my means, have also paid back my debt like a mother@@@@@@

Moggles_2

Congratulations on turning things round.
:beer:

So far so good, but I would think carefully before you reduce these limits again. Lowering credit limits can affect future applications for credit, if you overdo it. Moderation is the key.

Be aware too, that it isn't always possible to re-instate some of the old limit should you change your mind later.

itsgototstop

Thank you, I think I will leave as is for the moment

[Deleted User]

How can lowering credit limits affect future applications for credit? I've never heard of that being true; it sounds like scare mongering to me. It is true that you're not guaranteed to get the bigger credit limit back. It's also true that when you apply for credit lenders will look at your overall access to funds; if you have a crazy amount of unused credit they're more likely to turn you down.

itsgototstop

Deleted_User wrote: »

How can lowering credit limits affect future applications for credit? I've never heard of that being true; it sounds like scare mongering to me. It is true that you're not guaranteed to get the bigger credit limit back. It's also true that when you apply for credit lenders will look at your overall access to funds; if you have a crazy amount of unused credit they're more likely to turn you down.

Thanks for that, I had £77k of unused credit on cards, reduced it to £30k...I know I should just cancel cards, but I keep thinking one day I might need one of them, and what if one or two of them cut my limits by a huge amount...I am probably being stupid but it gives me comfort that if I suddenly needed it I could get it (cash/credit I mean)

Untill I can build my savings up its like a comfort zone..( runs way and hides for fear of being shouted at, had cc since 18, 20 years ago, and if I cut them all up and cancelled would feel bereft)

skyrider007

itsgototstop wrote: »

my friend said it made it look as if I was in difficulty financially,

I'm thinking the opposite! If you're worse off financially you'd be asking them to increase the limit. Asking them to reduce the limit may even give your bank the impression that you're well off and no longer requires to borrow so much money anymore. :j

CannyJock

*cough* stooze *cough*

Not for everyone, but is a way to profit from all that available credit if you're not otherwise using it. Might mean a few phone calls to get good 0% offers, Clariman wrote a great article on getting offers on cards: http://www.makesenseofmoney.co.uk/a_extend.html

Bah, you've already reduced the credit down, pity. 77K on 0% for 12 months, with a 3% fee, repaying 3% each month, with a Kaupthing Edge account at 6.5% and basic tax payer would have netted you £ 1101

Take a look at the stooze calculator http://www.stoozing.com/calc.htm for different amounts.

itsgototstop

CannyJock wrote: »

*cough* stooze *cough*

Not for everyone, but is a way to profit from all that available credit if you're not otherwise using it. Might mean a few phone calls to get good 0% offers, Clariman wrote a great article on getting offers on cards: http://www.makesenseofmoney.co.uk/a_extend.html

yes but I am not as disciplined as I should be!!! Won't allow myself to do it as I would probably spend it!!!!!

itsgototstop

CannyJock wrote: »

*cough* stooze *cough*

Not for everyone, but is a way to profit from all that available credit if you're not otherwise using it. Might mean a few phone calls to get good 0% offers, Clariman wrote a great article on getting offers on cards: http://www.makesenseofmoney.co.uk/a_extend.html

Bah, you've already reduced the credit down, pity. 77K on 0% for 12 months, with a 3% fee, repaying 3% each month, with a Kaupthing Edge account at 6.5% and basic tax payer would have netted you £ 1101

Take a look at the stooze calculator http://www.stoozing.com/calc.htm for different amounts.

Blimey, I have just been offered 20k on a 7 month 0% percentage but a fee of 2.5%, is it it still worth it?