Credit Limit Increase Offer

THEAndyR

Hi all,

First time user of the MSE forum so, firstly, hello and secondly, be gentle

I've received a letter from Nationwide, who I have a credit card with, offering me the opportunity to raise my credit limit with them.

I've been using the card to pay off a balance more than for purchases (with the exception of the occasional emergency) so I don't really need the additional funds. I've done some reading on other money sites and the common theme seems to be that I've received this offer as I'm not using the card for purchases.

My question is, if I decline the offer to increase my credit limit does this go against me in anyway with relation to credit scoring / my credit file?

Thanks in advance for any advice.

guesswho2000

No, it won't show on your file that you were even offered the limit, never mind your refusal of such offer.

However, accepting the increase could show as a positive, as you'll have a lower utilisation (debt to available credit) percentage.

PhenoM

I'd always accept an increase as it's a positive sign to other lenders.

debtcutter

As long as the occasional emergency that you use you card for is occasional and you know you'll use it sensibly (from the sounds of the questions, it seems like you will) then it would reduce your balance to limit ratio which doesn't hurt your credit file.

Like others have said, it won't make your credit rating worse than it is now, if you don't accept it.

Have you got the card on a 0% offer, out of interest?