Does reducing credit card limit affect Veda score?

[Dawg]

Hey all,
Given the recent changes to the Citibank signature I am keen to reduce my credit limit on the card. When I initially made the increase it was treated as an enquiry on my credit score. I don't see why a decrease would need the same, but banks can be funny. So I wanted to know if anyone had experience with reducing their limit, was it treated as an enquiry? or does it not affect the credit score at all?
cheers,
Dawg

 

[blueythecat]

I've reduced credit limits on quite a few cards over the years, including the Signature, and none of them have been recorded on my credit file. Reducing my limits hasn't had a positive impact either, as none of the providers was participating in CCR.

Hope this helps.

 

[Dawg]

Thanks for the reply blueythecat, you have answered my query perfectly.

 

[Dr Ralph]

It has no impact at all.

 

[burmans]

It has no impact at all.

Currently nothing but I'm pretty confident it will have an impact when CCR comes in.

 

[exceladdict]

Currently nothing but I'm pretty confident it will have an impact when CCR comes in.

I'm only on the bi-yearly veda detail updates, but:



Unsure how it will affect your score, but it will provide a means for banks to check how many open cards you have when applying for the next one...

 

[TomVexille]

I'm only on the bi-yearly veda detail updates, but:

View attachment 61962

Unsure how it will affect your score, but it will provide a means for banks to check how many open cards you have when applying for the next one...

I can only guess that a lower potential liability means that you are "less risky" and potentially give you a higher score. Although only once credit providers really start contributing information.

 

[burmans]

The reason existing credit limits are important is that the credit provider needs to assess your ability to pay and indeed under Responsible Lending legislation can't lend if they think you can't repay. Unfortunately the law does not actually allow balance to be shared so limit is used as a proxy. Lenders know you probably won't be using all your limit but nevertheless need to take into account that money is already "available" credit. So the more you have already lent, the less they will be prepared to lend.

At the moment they can't see all this info (because very few credit providers are currently providing) but when they can see people have a whole lot of loans already in place (perhaps undeclared) it would be a brave lender who ignores it.

 

[get me outta here]

Still only 2 x AMEX cards reporting on my Veda file.

Interestingly, that my VEDA stated 'combined credit limit' is quite a bit lower as it shows only up to Feb 2016. This would be useful if I wanted to apply for yet more cards quickly before the next 'report'.

 

[Ambo]

I have 2 AMEX cards, both for a few months, the limit from Veda only has one card limit and no mention of the other card.

Go figure.