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Catalogue - Credit Limit - Reduce?

(5 Posts)
MrsMozart Tue 24-Oct-17 08:55:44

I've had a catalogue account for years. Used it for bits and bobs and some bigger stuff, ie electric chair and bed for my sister, making the most of the zero interest.

I pay regularly and on time. The balance is just about cleared.

The limit is high (think five digits). It automatically increases and has done on a regular basis. I'm debating reducing it as future income will probably not be as high and my mindset is changing, ie save rather than credit.

My questions are: would it have a negative impact on my credit rating if a) I reduce it, and b) I remove the auto-increase function?

Thank you folks.

MrsMozart Tue 24-Oct-17 10:24:43

Think I've answered my own question - managed to get the right words to find the answer on Google.

The basic gist is, leave it alone. Don't utilise more than 30% of it (or of total credit), and don't cancel as it would affect that utilization percentage.

Learn something new every day.

LemonShark Tue 24-Oct-17 16:33:46

Yeah just leave it, only cancel the card if you don't trust yourself not to use it problematically. It's good for your credit rating to have more unused credit available to you and like you say, keep the balance under 30%.

They're bloody sneaky aren't they. I had a CC when I was earning about £11000 per year if that and they just kept increasing it every few months until it was at about £6k!

MrsMozart Tue 24-Oct-17 20:44:57

Thank you.

It seems counterintuitive to keep it and at the level it's at, but having gone through the pain of paying it all back (even at interest free), I don't want to use it again.

I suppose it's there and useful for the odd washing machine (for other sister), fridge and freezer (we redesigned the kitchen but didn't account for having to change the big one for two small things), and bits 'n' bobs. Just have to remember to look at the statement and keep it in check!

MrsMozart Tue 24-Oct-17 23:30:02

And you're right about the sneakiness of the increases! If anyone had told me I'd ever owe that much on a catalogue I'd have looked at them gone out. Ah well.

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