Increasing my credit card limit?

skyranger

Hi guys

Just a quick question. I'm looking to improve my credit score and I've worked hard over the last year to improve it dramatically.

I currently have a credit card which hasn't had any balance on for the six months. It's set at £5000.

I've read about how credit score can be improved based on the debt to credit ratio - is it worth me asking my bank to improve my limit (even though I won't use it) so I can have an improved debt to credit ratio - or would me actually asking them affect me?

Sorry if I'm missing something there but I'm just trying to plan my future in a couple of years time when I apply for something else.

bengalknights

The increase would be based on income as long as your income is sufficient you could ask for a increase.

Gromitt

If you've not used it for 6 months, your unlikely to get a credit increase as you've no history. You need to spend on the card and pay it back to gain history first.

Hazzinho

If you don't really use the card then upping the limit is pointless. Don't focus on the credit score as it means very little applying for credit. Lenders have their own criteria. Basic rule isensure you're on the electoral roll, ensure the data is accurate and keep debt under 50% of your salary. CRA's don't store your salary so someone on £100k could have the same score as someone on £15k, if both these people have a £10k debt only one of them is getting a loan hence the scores mean nothing.

skooldaze

So does that mean if your salary isnt stored you could put in £100,000 as opposed to £10,000?

Tixy

skooldaze wrote: »

So does that mean if your salary isnt stored you could put in £100,000 as opposed to £10,000?

The credit reference agencies don't know your salary. A potential lender would pick that up from your application.

You could put an incorrect salary in, but it would be fraud.

And it would likely be highlighted as an inconsistency by the national hunter database (which a potential lender usually checks in addition to the credit reference agencies). Which might prompt your lender to ask you for proof of your income.

thenudeone

Asking for a credit limit increase may result in you be credit checked again, which may leave a footprint on your file which other lenders can see, so don't do it unless you need it.