Advice please

ninetynine

Hi

I used to have a student mastercard (Barclaycard) which was recently upgraded to a 'Gold' mastercard as I graduated a few years ago and I am in full-time employment. My current credit limit is £1500 and I have just received a letter to say that this limit will increase to £3000 automatically.

I have had my credit card for four years and have always paid off in full, thus never incurring interest/charges. I use it to buy things online, especially for purchases over £100. I don't 'need' £3000 so my question is: what are the advantages and disadvantages to me keeping the increase? How will my credit rating be affected?

Other things that may or may not be of relevance:
I have a £100 overdraft with Barclays (not interest free, and I am not using it).
I have a £500 overdraft with First Direct (the first £250 is interest free, the rest is not, and I am not using it).
I applied for a Halifax Clarity Credit Card a year ago but I was rejected.

InsideInsurance

If you are considering credit scoring impacts then it is too complex to consider in isolation. Some of the factors:

Positives
Underwriters like seeing other providers trusting you enough to offer you "large" limits
With a higher limit your utilisation rate will be lower if you were to use any of your credit facilities


Negatives
Underwriters consider the "maxed out" scenario so having higher limits may restrict new credit lines because they are concerned you could afford it if you maxed out all available credit

CLAPTON

3,000 is a relatively modest limit so I wouldn't do anything

maybe one day you will want to buy a highly priced item (sofa, car etc) when the higher limit may become useful.