Credit search when auto increase offered?
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DenABac
Posts: 16 Forumite
in Credit cards
Hi community,
Among others I been using a Aqua Card to improve my credit rating (8 months in the U.K.)
The Aqua card comes of cause with a ridiculous APR and I always leave about 50£ on the card so they get interest off me. I was hoping this will trigger an auto increase.
Yesterday I got a letter saying they'd like to increase the limit by 150%. I now can ask them to increase immediately or just wait some time for them to increase it.
I understand that a limit increase in general leads to better credit. Hence I'd like to take it.
The important question to me is will the increase trigger a credit search (hard pull)?
Even more important does it make any difference in the process if I tell them to increase it immediately?
As always thank you for any advice in advance.
Bests
Among others I been using a Aqua Card to improve my credit rating (8 months in the U.K.)
The Aqua card comes of cause with a ridiculous APR and I always leave about 50£ on the card so they get interest off me. I was hoping this will trigger an auto increase.
Yesterday I got a letter saying they'd like to increase the limit by 150%. I now can ask them to increase immediately or just wait some time for them to increase it.
I understand that a limit increase in general leads to better credit. Hence I'd like to take it.
The important question to me is will the increase trigger a credit search (hard pull)?
Even more important does it make any difference in the process if I tell them to increase it immediately?
As always thank you for any advice in advance.
Bests
0
Comments
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No, there will not be a credit search as its the credit card company offering the increase. Aqua are quite good at increasing limits. Mine started at £450 and one year after its over £3000.
If you want to apply their increase immediatelly just ring the number on the letter, follow the prompts until you get to the point that you "received a letter about a credit increase and want to apply it now". It is an automated process and the new limit is applied instantly.0 -
companies wont hard search you if they've offered you the increase0
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Even credit cards from sub prime lenders want you to be responsible - buying and paying off in full every month shows you are a good borrower, leaving £50 on the card and paying stupid levels of interest on it doesn't achieve anything.
Also, so what if they do a credit search on you? It's not going to cause any issues, if you've only had the card 8 months it won't be long enough to build up a good credit history anyway so having them search your record just in case you had more credit elsewhere is meaningless.0 -
I agree its not a good thing to pay high interest on £50 because for the following month's spending you don't get the 56 day interest free period on purchases.
You are paying a lot of interest for nothing.0 -
Remember you are paying interest not only on the £50, but also all transactions between the time you make them and when payment actually arrives.
So if you have significant spending I suspect your interest is rather more than £1 or £2.
Much better to pay the statement amount in full.0 -
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