HSBC Credit Card limit upping declined

rikswales

Hi Guys,

I've just been declined an increase in my Credit Card limit due to, what they called, 'insufficient card use'. Is this going to affect my credit rating in the long run? I only wanted to up the limit in the first place to be able to increase my credit rating as we're looking to get a mortgage at some point soon. Have HSBC just ruined this plan for me? The ridiculous thing is that I was offered any limit I wanted up to £3000 but went with £500 to start off with as I'm quite sensible with money and don't use it that much... Am I actually just being penalised because I'm careful with money and don't spend money I don't actually have? This is certainly what it feels like.

Any help/advice would be greatly appreciated.

Cheers,

Richard

Tixy

Hi Richard - this won't affect your credit rating in the long run and its sounds unlikely they have even done a credit check at all - so probably won't affect it short term either.

Have you been using the card at all? How long have you had it? Are you using a small amount each month and paying off in full the next month?

rikswales

Hi Tixy,

Thanks for the quick reply. Do you really think they didn't do a full check? It did seem rather quick over the phone...

I have been using that card. I've had it for... probably about 8 months. I've been getting a few things on it every now and then (a new desktop PC just before Christmas and a new laptop last month, things like that), and yes, I've been paying it off in full every month.

Have you got any tips on how I could improve my credit rating? I've been thinking of putting the weekly shop on it, something like that.

Thanks again,

Richard

ihateyes

They wont do a credit search, they look at your card use, and base an incease solely on that.

Having a higher limit wont help in anyway towards a mortgage....
What would effect it is missed payment/going over your credit limit.

rikswales

Sorry, yes, I was actually going to spend some money on the card, was actually planning to buy my outfit for my wedding next weekend using the card with the upped limit. Now I'll just have to use the cash we've saved up instead and do absolutely nothing for my credit history.

It's good to hear that it's not going to affect my credit rating though. That's cheered me up no end. So when she was saying that she had to go through the whole application process again over the phone and was told by the system I'd been declined due to 'low card use' that was all just the in-house HSBC system?

Tixy

Yep, that all sounds like it would be inhouse - its the sort of terminology they would use for their own systems not for a credit check.

I would certainly make sure you keep spending on the card and repaying it and this will be good for your credit rating.
Assuming your problem with your rating is a lack of credit history then rather than up the limit on that card what might help your rating more would be a second credit card -even if that also has a small limit - as that would be 2 accounts showing positive repayment history. Obviously won't help in time for your outfit shopping but maybe consider a second card and putting your weekly shop or petrol or something on the second card.

rikswales

Thanks guys. This is all really good advice. I think I might invest in a second card. Just to get the ball rolling towards the mortgage...

malcolmffc

From the POV of your credit history, it doesn't really matter how high the credit limit is. The important thing is that you're making your payments on time and paying more than the minimums.