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  • FIRST POST
    • clear_as_mud
    • By clear_as_mud 11th Mar 17, 12:35 PM
    • 66Posts
    • 75Thanks
    clear_as_mud
    Credit Limit increase
    • #1
    • 11th Mar 17, 12:35 PM
    Credit Limit increase 11th Mar 17 at 12:35 PM
    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, 12:38 PM
    • 11,625 Posts
    • 11,651 Thanks
    zx81
    • #2
    • 11th Mar 17, 12:38 PM
    • #2
    • 11th Mar 17, 12:38 PM
    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, 12:45 PM
    • 29,056 Posts
    • 16,863 Thanks
    YorkshireBoy
    • #3
    • 11th Mar 17, 12:45 PM
    • #3
    • 11th Mar 17, 12:45 PM
    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, 12:50 PM
    • 66 Posts
    • 75 Thanks
    clear_as_mud
    • #4
    • 11th Mar 17, 12:50 PM
    • #4
    • 11th Mar 17, 12:50 PM
    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.
    • iAMaLONDONER
    • By iAMaLONDONER 5th May 17, 9:40 AM
    • 1,612 Posts
    • 386 Thanks
    iAMaLONDONER
    • #5
    • 5th May 17, 9:40 AM
    • #5
    • 5th May 17, 9:40 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.
    Originally posted by clear_as_mud
    Maybe see if you can get a credit limit increased - you can see the limit pre-approved on your online banking to replace one of the 4k or even the 3.3k card
    • MEM62
    • By MEM62 5th May 17, 10:01 AM
    • 1,194 Posts
    • 831 Thanks
    MEM62
    • #6
    • 5th May 17, 10:01 AM
    • #6
    • 5th May 17, 10:01 AM
    What are you concerned about? That the additional credit facility you are being offered might impact on your ability to secure additional credit?

    It's a non-issue. Accept the increase and think no more of it.
    • Ben8282
    • By Ben8282 5th May 17, 9:17 PM
    • 1,846 Posts
    • 777 Thanks
    Ben8282
    • #7
    • 5th May 17, 9:17 PM
    • #7
    • 5th May 17, 9:17 PM
    Accept the increase and stop worrying about nothing.
    • Windofchange
    • By Windofchange 5th May 17, 10:46 PM
    • 446 Posts
    • 478 Thanks
    Windofchange
    • #8
    • 5th May 17, 10:46 PM
    • #8
    • 5th May 17, 10:46 PM
    It will affect your credit utilisation ratio, but I would say looking at your other debts and amounts it isn't worth worrying about. They obviously think you'll use it and therefore get into more debt and therefore be a better customer for them. It is a trap I fell into a decade ago. I won't use it I thought at the time - just about paying the last of it off now!

    I now have three credit cards having cancelled others. Between them I have around a 50k credit limit. Insanity really thinking about it. Every few months one of them will put my limit up. I've learned my lesson though and I'm getting rid of my debt. I take the increase, but I'm never going to let myself get back to where I was. I have the maturity now to manage it. Question is I guess do you trust yourself? You already have a lot of debt!
    Debt Free by Xmas 2017
    100% of Bank of Scotland CC 704.74
    10.13% of Virgin CC 3750
    100% of Barclaycard CC 767.15
    68.69% of Student Loan 3124
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