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  • FIRST POST
    • clear_as_mud
    • By clear_as_mud 11th Mar 17, 11:35 AM
    • 66Posts
    • 75Thanks
    clear_as_mud
    Credit Limit increase
    • #1
    • 11th Mar 17, 11:35 AM
    Credit Limit increase 11th Mar 17 at 11:35 AM
    I have just got a letter saying one of my providers is increasing my credit limit on a card I have.

    I don't know whether to accept it or reject it. I have done a bit of research online but I get conflicting thoughts. Looking at my credit files I seem to have a great rating/file, with no defaults, no CCJs, bankrupt status, CIFAS, and all my accounts up to date etc.
    The new MSE credit club thing is showing green everywhere and a hit rate of 86%. Does anyone have any ideas how a credit limit increase might affect me? Or is this a finger in the air guess?

    My only concern is I already have a lot of available credit/ income ratio. I earn £30k


    I have the following limits
    1) £3300 with a current balance of £2550
    2) £4000
    3) £2000
    4) £4000
    5) 1 car loan with about £11k left to pay.


    I also have several bank accounts with agreed overdraft facilities that combined equal about £5k.

    The card with the £2550 balance is on 0% and this is the provider who has written to increase my limit. They want to double it to £6600.

    What do people think? Is this likely to affect me negatively?
Page 1
    • zx81
    • By zx81 11th Mar 17, 11:38 AM
    • 10,858 Posts
    • 10,761 Thanks
    zx81
    • #2
    • 11th Mar 17, 11:38 AM
    • #2
    • 11th Mar 17, 11:38 AM
    Won't have much of an impact either way. I'd take it if it's a card you plan on using.
    • YorkshireBoy
    • By YorkshireBoy 11th Mar 17, 11:45 AM
    • 28,865 Posts
    • 16,636 Thanks
    YorkshireBoy
    • #3
    • 11th Mar 17, 11:45 AM
    • #3
    • 11th Mar 17, 11:45 AM
    Maybe do a swap? Take the limit increase and close the £2K card. That would both increase your average credit limit and reduce the number of cards you hold, thereby presenting you in a better light should you wish to apply for another card in future.

    That's assuming the £2K card isn't a specialist card that you'd wish to retain, eg Halifax Clarity/Nationwide Select/Santander Zero etc?
    • clear_as_mud
    • By clear_as_mud 11th Mar 17, 11:50 AM
    • 66 Posts
    • 75 Thanks
    clear_as_mud
    • #4
    • 11th Mar 17, 11:50 AM
    • #4
    • 11th Mar 17, 11:50 AM
    The £2k card is the N/W select. It was my first ever credit card when I was 18 so its my longest term relationship with a provider. That was one thing I noticed on the MSE credit club, it said it looks good if you have long standing relationships over 6 years with the same provider, so I would rather keep this open. But a good suggestion, I might get rid of one of the £4k cards at some point.
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