Credit report & debt vs credit limit

[rossivr6]

Evening all.

Ill try and keep it simple and brief.

For argument sake lets say i have credit limits across a couple of credit cards of £10K and im currently using £2k of the available credit therefore 20%.

If i choose to reduce my credit limits to £4K that would now mean that im using 50% of my available credit therefore less favourable.

Does reducing your credit limit have a negative impact on your credit file if the above is true re: percentages of credit-available?

I want to close a couple of accounts but am worried it could have an impact.

Interested in your views.

Thanks all.

[Sarnie]

Yes it will....

[Integroo]

Yes. Leave them open. Cut up the cards if you're worried about using them when you shouldn't.

[number2]

I'm an average Joe and I have two... one that I use for day-to-day travel and one-offs, and one that I have in the cupboard that I should cancel! My credit - ability to get an optimal rate on a mortgage when need be - has never suffered.

[rossivr6]

I guess i will have to contact the companies in question and tell them to stop increasing my credit limit.

[Simpo Two]

rossivr6 said:

I guess i will have to contact the companies in question and tell them to stop increasing my credit limit.

I'm not involved in this curious dance but if you wish to maintain max credit rating, and lowering your credit limit damages it, then surely you'd want them to keep increasing your credit limit... just don't use it.