How can I improve the chances

sadia85

First ever account opened with barclays 2 years ago, earning 27k a year and salary going straight into my banks and never got any O/D or credit card offered. I did apply 2 times in one year and got rejected fir barclaycard.

Got one more current account with hsbc and also have one of their credit card with £500 limit. I use around £ 370 every month and never pay in full because some one advice me by paying in full you will never increase your credit limit. I pay around £300 every month, it's over a year and never got increased my limit yet.


What possibly I could do to increase my limit and chances of getting credit cards etc with out any problem.


What I could do with barclays account ? Would it be wise to cancel the account and open somewhere else ?

I'm looking forward to buy my own house and saved some deposit for so need advice where I can get the minimum chances to be rejected.

Cheers

pjread

Why don't you ask HSBC if there's any chance of an increase if you need/want one, and perhaps add a "I'm applying for a mortgage so don't want any CRA searches though..." and listen to their mortgage pitch if you've time... (I seem to recall HSBC mortgages are relatively competitive, or were a few years back)

izools

Paying your credit card in full certainly doesn't prohibit you from being eligible for limit increases, whoever told you that is wrong.

HSBC may not be forthcoming with credit limit increases because you do your banking elsewhere - they can't see your income. If you were to use your HSBC account as your main account you would be offered a lot more from them over the months and years.

They are by far and away the better bank to be with out of HSBC and Barclays anyway, much more professional and much better rates.

If I were you I'd switch all my banking to HSBC, and after 3~6 months ask them for a limit uplift on your credit card. They should be happy to oblige

CLAPTON

makes no sense to keep a balance on a CC each month
it costs you money and make it appear that you can't manage your income properly

when did you apply to barclays for a CC?
if over a year then maybe try again as they are your active bank

Any

Whoever told you not to pay your credit card in full needs a slap. Do it if you are still in contact with that person.

I have never ever paid any interest on any of my cards (until last year) and I have 7 cards, never been declined for one. If anything not paying off your first card in full might show that you cannot even manage properly the little credit you do have.

Plan - move your full current account to HSBC. Start paying off the card in full every month. After 3 or so months ask for an increase on limit.


6mths down the line try for another card.

chexum

CLAPTON wrote: »

makes no sense to keep a balance on a CC each month it costs you money and make it appear that you can't manage your income properly

Absolutely. You need to understand that it's not a problem to spread occasional larger purchases over two months, nor is it bad to use a card as a convenient credit to repay large balances over a longer period - preferably within a promotional (low, or 0%) period.

But if you keep rolling forward a balance which is much lower than your monthly salary, it will cast shadows on your ability to repay credit. It is more likely interpreted that you don't have reserve, you are unable to budget, and thus are very risky to lend more money to.

As many cards/banks now report the monthly repayment history, you may need to wait a few months after switching to paying in full so that all banks (including your own) can see that you have no problems in handling credit, and know when you can afford a larger purchase.

If you waited 6-12 months, with a perfect repayment history, and you have still no offer in sight, you can probably try opening a card elsewhere - Sygma may be a easy choice. Patience is the best, and make sure you know if there are any time limits for any requests you make, with Barclaycard, you'd need to wait 6 months after your last request to increase the credit limit, or it would be rejected outright.