Possible to increase credit limit during promotional period for purchases?

firsttimestudent

Hi there,

I have a Halifax All-in-One card with a £1800 limit on it.

I'm currently putting all my purchases on it. I am definitely able to pay off the entire sum on it at the end of the 9 mth offer, so don't worry about getting me into the debt spiral!

Currently I have a Direct Debit set up for minimum payment.

Was wondering should I actually pay a little bit more than the minimum payment - so that there's a better chance for me to increase my credit limit at the 6th month (and hence more stoozing)? Or does it not work that way?

Thanks for any advice about it!

LongTermLurker

I would have thought that only paying the minimum makes it look as though that's all you can afford, therefore, I wouldn't expect a bank with an ethical lending policy to extend it - that's not to say the Halifax won't though!

The £1800 initial limit is not very high, and if they extend it at all, I wouldn't expect it to be much - even a 10% increase would still be less than £2000, so your ability to gain much from the extra is limited.

In your favour, not missing any payments means that you're reliable.

YorkshireBoy

I seem to remember Halifax won't look to increase the credit limit until after the 6th statement has been produced (and that statement's minimum payment made?). If that's the case you could be 7-8 months in.

Since you'll possibly incur a credit search you may as well use it to apply for another card...especially since if you don't you'll be repaying the extra spend very quickly. Better to leave the Halifax balance as it, and make the (very low) 1% payments on it, whilst putting new spend on a new card for another x months?

firsttimestudent

Hey thanks so much. I guess what you've suggested does really make sense!