Reducing credit card limits, or canceling may change your decline to an accept for a loan.
Whatever your credit limit is (even if you don’t use the card), most banks will generally assess your limit at 2-3% per month.
So for a $10,000 credit limit, the bank will consider your minimum monthly repayment to be $300.
This has a huge impact on your serviceability.
Banks can see if you were more than 5 days late any time in the last 2 years. Every missed payment is more likely a decline.
You may want to check your credit rating prior – just in case you have forgotten a missed payment.
A simple call your bank can reduce your credit limit. Reducing them to the necessary amount will greatly help your application.