Barclaycard offered increased credit limit...

annagib99

Hi,

I hope someone can advise me.

I have had a letter from Barclays offering to increase my credit limit from 5k to 8k. Ideally I need to get a new 0% balance transfer card but last time I tried (over 6 months ago) I was declined as I was using all of my available credit. Since then I have closed various accounts and increased my monthly payment so that I'm not only paying the minimum payment, in an attempt to improve my rating.

So in terms of my credit rating and chances of being accepted for a new card is it better to decline the increase in credit limit or accept?

Thanks

regency_man

annagib99 wrote: »

Hi,

I hope someone can advise me.

I have had a letter from Barclays offering to increase my credit limit from 5k to 8k. Ideally I need to get a new 0% balance transfer card but last time I tried (over 6 months ago) I was declined as I was using all of my available credit. Since then I have closed various accounts and increased my monthly payment so that I'm not only paying the minimum payment, in an attempt to improve my rating.

So in terms of my credit rating and chances of being accepted for a new card is it better to decline the increase in credit limit or accept?

Thanks

Oooo that's a tough one...

On one hand if you increased your limit and DID NOT spend it, then you would be using a lower percentage of your available credit, which is looked upon favourably. If you are using 100% of 5k, you'd only be using 62.5% of 8K.

On the other hand it would increase your total available credit... which combined with other factors could be looked up unfavourably, especially if there are missed payments on the file.

On balance, if your credit history is good and you can trust yourself not to spend it, I would personally go for the increase.

If your history is less than perfect, decline it.

annagib99

Thanks for your thoughts!
I would absolutely not spend any more on the card - I don't use it. I don't have any missed payments.
My aim is to get a new 0% balance transfere card as I am paying a lot of interest on the Barclaycard.

brightonman123

DONT DO IT! expensive way to borrow, and you will just get sucked in to thinking you can afford to max the limit out..

i got caught like this when i were a wee lad.. took me AGES to pay off!

izools

If all of your limits added together at the moment amount to less than half the balances of all your revolving credit accounts (overdrafts, credit cards, store cards) then you would benefit from accepting an increase.

A low debt to limit ratio yields a better credit worthiness than a low limit to income worthiness.

So owing 60% of your limits, and having limits that amount to 40% of your salary will look worse than owing 40% of your limits and having limits that amount to 60% of your salary.

lika_86

I'm surprised they asked, normally I just log online and find they've increased mine, last time it went from about £3500 to £6700.

Cash_Flow

lika_86 wrote: »

I'm surprised they asked, normally I just log online and find they've increased mine, last time it went from about £3500 to £6700.

New legislation in place - Do keep up:p

micraplay

i personally would reject it. ive been fooled by this trap with the lure of more credit after paying it off!

ive ended up with credit limits that tot up to nearly my entire annual salary, fortunately not maxed out but they have been! slaving my !!! off now to pay of cards and get straight after having a 'well, im still well under my limit' attitude when spending!