All Topics / Finance / Reduce Credit Card Limit

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  • Profile photo of magic32magic32
    Participant
    @magic32
    Join Date: 2005
    Post Count: 49

    If I reduce my credit card limit from $1000 to $500, around how much more borrowing capacity would I be able to get?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Would be neglible. Some lenders would not factor in your C/c limit if you have paid the balance outstanding on time 3 months running.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of premboprembo
    Participant
    @prem07
    Join Date: 2014
    Post Count: 2

    Hi Richard,
    Good to know. Who would those lenders be?
    Thanks

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Generally lenders look at the monthly servicing cost of 2-3% per month on the limit. In this case reducing a limit down $500 would only achieve a $15/per month servicing boost per month at best, any loan that borderline is going to have a multitude of other problems which could be solved by using different lenders/products etc.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    It will boost it by $15 a month so nothing to get excited about.

    However, if you maintain good conduct with the account it will gain you some brownie points when applying for finance with that lender again.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 5 posts - 1 through 5 (of 5 total)

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