How do Credit Card Limit Increases work ?

Ryan101

I am just wondering how the credit limit increases work ?, as say I apply for a card now and they ask all my details including income, and say I then get approved for a card with a £2000 limit, in six months that’s increased say to £2600, £3000 in a year etc. Now in that time I could have changed jobs, have a higher or lower salary, become unemployed or anything so how do they base their income level out to work the increases on ?.

Or is it a matter of if you have a £2000 limit and use it up to the limit every month (And pay it off) that it looks like £2000 is not enough and they increase it ?, or the opposite of if you have a £2000 limit and only ever use a £1000 then they never increase it ?.

Or if you have a current account with the same bank then they base it on how much goes through that account and how you use the account ?.

Thanks.

stephane_2

Sometimes it can be an automatic credit increase especially if you are getting close to your limit (some unfortunately tend to do that without asking you first), some mainstream credit card providers will give you an increase after the first 6 months, depending on how you've managed your account but for most you will need to request it, then a full credit search would be conducted.