Virgin CC limit increase

bighitter4654 · 7 July 2017 at 1:55PM

I have received a letter from Virgin to say that unless I reject their offer, they will be increasing my limit from £13k to £18k in August. I have no intention of utilising the extra credit (my balance at the minute is approx 3k). However, I just wondered if the extra credit being available is good for my rating? I currently have a mortgage offer and expect to complete towards the end of August, obviously I don't want anything impacting that. If I ignore the letter and just allow them to increase it, will they do another credit search because that's something I want to avoid? The letter just says they have reviewed my account blah blah blah

[Deleted User] · 7 July 2017 at 1:56PM

It depends on your income, limits and balances.

bighitter4654 · 7 July 2017 at 2:02PM

Income is approximately 40k and the balance, like I say, is 3k. It's on 0% until early next year and my intention is to just pay it off by then. Just wondered if the new limit was a good or bad thing really

bengalknights · 7 July 2017 at 2:13PM

So effectivly you would be able to utilise over 50% of your net income as debt, some lenders would see this as a risk.

MallyGirl · 7 July 2017 at 2:14PM

my Experian report (free to me before anyone criticises) has my highest limit (£18k) as a positive factor

bighitter4654 · 7 July 2017 at 2:17PM

bengalknights wrote: »

So effectivly you would be able to utilise over 50% of your net income as debt, some lenders would see this as a risk.

I guess from the conflicting opinions nobody is really sure

[Deleted User] · 7 July 2017 at 2:27PM

If you only have the one card, I would accept the increase. It you had other available credit, perhaps not.

However, it would be wise to have at least one back up.

bighitter4654 · 7 July 2017 at 2:45PM

Deleted_User wrote: »

If you only have the one card, I would accept the increase. It you had other available credit, perhaps not.

However, it would be wise to have at least one back up.

Thanks for that. Yes, I only have the one card. The only other credit I have is approx 7k on a personal loan I took out for my car with Zopa at 3%. Regarding a back up, I am fortunate enough to be in a great company share scheme at work in which I have a decent amount saved. I could always access that in an emergency but I like to leave it if possible for the dividends and the fact that it's my nest egg

[Deleted User] · 7 July 2017 at 2:47PM

I meant a back up card, for when yours is declined at 2am at a petrol station in the middle of nowhere.

bighitter4654 · 7 July 2017 at 3:05PM

Deleted_User wrote: »

I meant a back up card, for when yours is declined at 2am at a petrol station in the middle of nowhere.

Hahaha yeah, I don't suppose my shares would do me much good in that particular situation :rotfl:

Not sure it's a good idea though to apply for another card just at the moment until I'm in the new house. I thought I was being smart opening another bank account for the benefits, until I read of the potential pitfalls on here regarding the effect on credit rating

bigadaj · 7 July 2017 at 7:13PM

bighitter4654 wrote: »

Thanks for that. Yes, I only have the one card. The only other credit I have is approx 7k on a personal loan I took out for my car with Zopa at 3%. Regarding a back up, I am fortunate enough to be in a great company share scheme at work in which I have a decent amount saved. I could always access that in an emergency but I like to leave it if possible for the dividends and the fact that it's my nest egg

Comoany share schemes can be good but they are also very risky. Single companies can go bust, values can certainly fall, and concentrating risk by having your employment and potentially a large proportion of your savings in one place isn't ideal.

Virgin CC limit increase

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