CreditCards Blog

Hi all,

I applied for an Egg card last week and phoned them today and was told I been have accepted.

They told me I have a 5500 cerdit limit on the card. Im only using the card to transfer a 1800 balance to it from RBS and only need a 2000 limit.

Im wondering how having the extra credit can effect me if say I applied for a mortgage etc within the next year or so?

Would it be beneficial for me to get the credit limit lowered to 2000.00 and if so how long does it take to show up on my credit file that I actually have 2000 available credit rather than the 5500.00?

The person on the phone I spoke to said the credit can be lowered once ive recieved the card?...She was also coming across as if they were doing me a favour by giving me the 5500.00 credit limit which I found a bit ennoying I think her words were "we have awarded you with 5500.00 credit":T :T

Thanks
Alex

Im wondering how having the extra credit can effect me if say I applied for a mortgage etc within the next year or so?In my experience, mortgage lenders are only interested in used credit, not available credit.

Indeed, if you lower your credit limit too much this could make you appear to be struggling, ie you're nearly maxed out having spent all your available credit. Better to leave some headroom?...how long does it take to show up on my credit file that I actually have 2000 available credit rather than the 5500.00? If you do it now, it'll show as 2,000 as soon as it's reported. If you wait a bit...a month or so until it updates.


In summary, if you're not wanting to apply for other revolving credit (ie credit cards and/or overdraft facilities), then I'd leave it where it is...or maybe lower it slightly?

Above all, remember...DO NOT 'spend' on the card after you've BT'd to it.

And finally, if you've no other debt (and because you can't 'spend' on it), why not stooz the additional credit limit and make a little profit out of them?