If my credit has been increased by Capital One, did they do a credit check?

Risco

Quick question, Capital increased my limit on my card from a measly £200 to £800. Also in the same month Natwest reduced my Gold card from £2000 to £350 then reinstated on appeal to £2000 ( it was an error apparently )

Do both these cause a credit check on my record?

izools

No. They base their decision re: limits on account conduct

Risco

izools wrote: »

No. They base their decision re: limits on account conduct

Thanks! Would rather not have multiple searches on my account. Now on the flip side does a credit increase help my credit score? :P

izools

That is a mixed bag.

If you apply for more credit, the lender may consider whether you can afford another facility based on the assumption your existing credit facilities are maxed out, not based on how much you owe.

So if you apply for say a £5,000 loan, and have two credit cards each with a £2,500 limit, but only owe £50 on each one, you may be affordability scored based on a £5,000 total credit card balance, not a £100 total credit card balance.

It's always good to keep a good margin between how much you owe and what your balance is (About 33% - 66% balance to limit ratio is the sweet spot), but not to excess, where you are either maxed out or have too much unused credit