Reducing credit card limit

Hi all,

Please can anyone help me with credit card limits. This year my goal is to reduce my credit limit. My question is: is reducing your limit also an entry on your credit file report?
I don't want to have many entries as I plan to reduce my credit debt gradually.

Thanks in advance.

Musonda
 
Musonda. Here's what you do.

1. Stop simping on internet forums. Harden up and be a man.
2. Ring your credit card company.
3. Tell them you want to reduce your credit limit.
4. Interrupt them when they inevitably try to stop you from reducing said limit.
5. Demand that they reduce the limit to whatever it is you want.
6. Threaten to move to another company unless they do what you say immediately.
7. After they have reduced the limit to what you want, pour a whiskey and bask in your manliness.

Be a man and TCB. That's 'Take Care of Business' by the way.
 
  • Like
Reactions: S.T
No hit for reducing it - and depending on the lenders process, they're may not be a hit for increasing either.

If you need to spend more than your limit (on one transaction) in the future just transfer additional cash into the card and have it in surplus.

Cheers

Jamie
 
I just had a loan client automatically rejected for a loan increase because of credit scoring. Really strong client too.

Upon investigation she found that HSBC had been doing a credit check on her approximately 10 times in the past 12 months. She was always paying the balance off in full each month too.

Beware.
 
I just had a loan client automatically rejected for a loan increase because of credit scoring. Really strong client too.

Upon investigation she found that HSBC had been doing a credit check on her approximately 10 times in the past 12 months. She was always paying the balance off in full each month too.

Beware.

Bl00dy BOQ does the same thing. And its my 'emergency' card which I think I have used once in 2years when my NAB one got scammed!


pinkboy
 
I just had a loan client automatically rejected for a loan increase because of credit scoring. Really strong client too.

Upon investigation she found that HSBC had been doing a credit check on her approximately 10 times in the past 12 months. She was always paying the balance off in full each month too.

Beware.

that onging credit relationship thing shouldnt affect score. Almost all credit providers do it.

id suggest thats a convenient excuse from Homeside or WBC im guessing

Typically with quite a few lenders these days "cash out" is a majorred flag to the scoring boz
 
I thought it rather odd that when we went for loans with Westpac about ten years ago, refinancing from another bank, we were advised to ditch our credit card and reduct our limit. I cannot recall whether we ditched a credit card altogether or reduced the limit.

Either way, after we had our loans approved, Westpac offered us a credit card with a $24K limit :eek:.

My understand was that had we already had a $24K limit card, our potential to borrow would have been considerably reduced, so I was amused when it was offered to us afterwards.
 
I just had a loan client automatically rejected for a loan increase because of credit scoring. Really strong client too.

Upon investigation she found that HSBC had been doing a credit check on her approximately 10 times in the past 12 months. She was always paying the balance off in full each month too.

Beware.

Quite a few secured lenders perform ongoing credit checks, Citibank also comes to mind. They're generally classified on the credit report as an ongoing enquiry which is different to a regular credit check for an application. Lenders are usually smart enough to recognise the difference and it's surprising that Westpac declined the application in these circumstances.



I thought it rather odd that when we went for loans with Westpac about ten years ago, refinancing from another bank, we were advised to ditch our credit card and reduct our limit. I cannot recall whether we ditched a credit card altogether or reduced the limit.

Either way, after we had our loans approved, Westpac offered us a credit card with a $24K limit :eek:.

My understand was that had we already had a $24K limit card, our potential to borrow would have been considerably reduced, so I was amused when it was offered to us afterwards.

10 years ago, this behaviour was quite common. You needed to qualify for the loan but new credit cards were not subject to the same criteria. we used to see lenders approve limits close to peoples annual salary. The simple process was get the mortgage approved, then the credit card department has a free for all with the new borrower.
 
Hi all,

I have been following the above discussion and I am do happy that my concern is adequately addressed.

Thank you very much to all. And for sure I have to grow hair on chest.

Cheers

Musonda
 
$50k via the LOC product.

I expect LOC will also have a slightly detrimental aspect to score vs term loan due to the evergreen IO term of the EM Type 2 product.

We had CBA deal temporarily bounce due to a metro postcode which hs a higher than median LMI default rate ....................... clearly score isnt as simple as it used to be, and i expect Lender BDMs are clutching at all sorts of reasons to.

if the client is existing head of credit will look at turning over the score of it can be shown to be a silly decision

ta
rolf
 
Back
Top