If I reduce my credit card limit from $1000 to $500, around how much more borrowing capacity would I be able to get?
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
Hi Richard,
Good to know. Who would those lenders be?
ThanksGenerally 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 MeInvestment Focused Finance Strategist - servicing Australia-wide
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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
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