Incentive to raise credit limit

pmorrison_2

Hi,

Is there any reason to get an increase on a credit limit if it is not needed? I currently have 2 cards, the Egg Money Card with 1% cashback which I use for all spending and the Barclaycard Cashback Card which I use just for petrol with 2% cashback. The Egg card has a £1250 limit and Barclaycard has £1000. I never get anywhere near this limit so dont NEED to increase it, but would it help to improve my credit rating if I was to apply for an increase to proove that I can be trusted with the extra limit?

Cheers,

pmorrison

vbrindle

I personally don't think it will make a difference with your credit rating.

Making payments on time and preferably more than the minimum payment should help.

The card companies may just decide to increase the credit limit anyway and that's them choosing to do it rather than you asking (some may think begging) them to do it.

If you don't need it then I'd carry on as you are now.

ldn-100

A report showing large unused credit facilities could count against you when you apply for new credit.

anna42hmr

i agree, if you dont need it, i wouldt increase it,
mine are often increased by the company any way, the only one i have ever done an online increase for was nationwide which i did twice (as they have a reveiw period of 6 months before you can request again on line, ) i went travelling last year for several months to australia, and 7 months before i went i requested an increase on my nationwide card and did the same 1 month before,

both increase requests were accepted and the only reason i did it was to ensure that i would not have to use the other card i was taking with me for emergenices, as nationwide dont charge for using abroad (unless drawing out cash for the credit card)