Credit searches when lowering limits??

kizzykizzywizzy

Hi there, just need an answer to a couple of questions, hopefully some clever person will know the answer.
Ok, I have managed to get my debt down with the use of a few 0% cards, I will be closing these off - letters have been sent.
But - I do want to keep 1 card for DIRE EMERGENCIES, but as the stupid bank keeps raising the limit on it, it's got an available credit of £11,400:eek: , I want to lower this to about £1000, will this put a search on my credit file ??
Also, I have an overdraft with the same bank ( Lloyds The Stupid Bank ) after lowering this before Xmas, which they messed up & caused me loads of hassle the dingbats have raised my limit on this to £3500:eek: I want to lower this to about the same, does this put a search on your credit file?
The reason I'm asking is that I will need to remortgage probably at the end of May as fixed rate ends September & I don't want any searches to show that I have so much available credit, but don't want it to look like I'm applying for O/D or credit cards either
Hope someone can help
Many Thanks:D

immoral_angeluk

I *think* that only increases in limit mean searches. Might be worth asking them before you agree to anything though.

nimbo

i hope they don't search to lower limits as i keep lowering mine by a few hundred a month, to slowly pay it back and if they do it'll look REALLY bad.

arrrgh bump.

i'm really interested in this too.

Paul_Herring

Limit changes don't normally get recorded as searches (reductions certainly don't as don't unasked for increases.) The only time it would is if you ask for an increase.

What will show however is the new limit on your credit report, which may be
1) A good thing because your overall credit available has decreased.
2) A bad thing because your percentage of limit used has increased (assuming you still hold a significant amount of debt - you don't appear to have much left in your sig.)

It is unknown which (if either) has a significant impact on your credit score with individual institutions (since some may prefer (1) over (2) and others vice-versa.)

In summary, neither request (card and overdraft) to lower limits will result in a 'search' appearing, but the card limit will be seen to be lower on your report (historical limit is one thing they don't keep on the CRA reports for some strange reason.)

kizzykizzywizzy

Thanks Paul Herring, only £200 left & that goes tomorrow!
Just the mortgage another £90,000 :eek:

I think I will call my financial advisor & see what she suggests, about keeping a "certain limit" as she deals with this all the time & has really helped me clear this debt.
Just a bit embarrased as last time I saw her I burst into tears:rolleyes: because she told me I could clear over £12,000 by cashing in a stupid ISA that I didn't know I was able to as took it out with my mortgage pressumed I HAD to have it :wall:
Many thanks for your advice everyone knew I could count on you:T