Had my credit limit increased without asking - would this affect my credit score?

djl75

I've had a letter from my bank telling me that they have reviewed my account and have decided to increase the credit limit on my credit card. They've done this without asking me but do tell me how to decline it.

How does this affect my credit score? Would they have done a credit check on me when reviewing my account? If I decline the increase, will this still show up on my credit history as an application for credit or anything else?

Thanks for any advice.

[Deleted User]

Declining it won't impact you. Accepting it could affect you if it makes you look stretched to other lenders, but no other impact.

They may have had a look at your other commitments but not done a full credit check on you.

bengal-stripe

djl75 wrote: »

How does this affect my credit score? Would they have done a credit check on me when reviewing my account? If I decline the increase, will this still show up on my credit history as an application for credit or anything else?

They will have based your review on the behaviour of your account, although the monthly feeds from the credit agencies will have played a role. No additional search would have been made.

If you decline the increase, your limit will just return to the previous one.

YorkshireBoy

djl75 wrote: »

I've had a letter from my bank

If you divulge which bank it is you may get better help by way of anecdotal evidence.

How does this affect my credit score?

There's no such thing as a (universal) "credit score". However, your credit rating may be adversely affected due to the additional available credit at your disposal.

Would they have done a credit check on me when reviewing my account?

Unlikely, but as I say above best to say which bank it is to see what others' experience has been.

If I decline the increase, will this still show up on my credit history as an application for credit or anything else?

No.

theheadlander

djl75 wrote: »

I've had a letter from my bank telling me that they have reviewed my account and have decided to increase the credit limit on my credit card. They've done this without asking me but do tell me how to decline it.

I thought that under the new guidelines the Government brought out about good practise that the bank were supposed to offer you a new credit limit due to circumstances etc and then it was for you to decide if you wanted to accept the new limit.

I know I bank with HSBC and I have just had a letter to ask if I wanted to increase my limit. I have to contact them to say if I want to take the new limit if I do not contact them my limit remains the same.

djl75

theheadlander wrote: »

I thought that under the new guidelines the Government brought out about good practise that the bank were supposed to offer you a new credit limit due to circumstances etc and then it was for you to decide if you wanted to accept the new limit.

I know I bank with HSBC and I have just had a letter to ask if I wanted to increase my limit. I have to contact them to say if I want to take the new limit if I do not contact them my limit remains the same.

The bank I'm with is HSBC but I'm sure the letter I had said that it would be increased unless I contacted them to decline. Unfortunately the letter's at home and I'm at work so I'll have to check tonight in case I misread it.

Thanks for everyone's advice about my credit report.

Val_s_5

I have just received a phone call telling me that a recent court case has ruled against credit card companies increasing credit limtis without the customers signature. Apparantly they will get me thousands back! All I need to do is give them my credit card details. They are posting me information, I assume this is a scam - does any one know about it?

bungle4by4

Val_s_5 wrote: »

I have just received a phone call telling me that a recent court case has ruled against credit card companies increasing credit limtis without the customers signature. Apparantly they will get me thousands back! All I need to do is give them my credit card details. They are posting me information, I assume this is a scam - does any one know about it?

sounds like a scam mate, if you have given people your credit card number, i'd be on the phone now to the card company.

djl75

Having checked the letter from HSBC, it says that unless I contact them "The new limit will automatically take effect from 13th December". Are they not supposed to be doing this now?

izools

djl75 wrote: »

Having checked the letter from HSBC, it says that unless I contact them "The new limit will automatically take effect from 13th December". Are they not supposed to be doing this now?

The new regulations only state that the card company must give the customer to opt out of the offered increase and all future increases.

HSBC have given you that option.

There's no law, regulation, or precedent set otherwise - any company suggesting there is, are scamming.

Unless the new limit now means your total credit limits across all credit lines you have add up to over about 33%-50% of your salary, there will be no negative effect, likely opposite due to the decreased balance to limit ratio

Hazzinho

I'd just leave it unless you can't control your self with an increased limit. Increasing your limit reduces your balance to limit ratio so i disagree with the other posters it is more positive than negative.