Credit Card Limit to Fix Credit Score

Pressleyno1

Evening all,

I have had a poor credit past however I have just looked at my Experian report.

I'm currently within the excellent bracket on score of 963.

One of the negative points is my low - self imposed - credit limit on my credit card which I set at £100.

This is a negative as "Your current limits on credit and store cards show the amounts that lenders have previously entrusted you with. Having a low highest limit shows that lenders may view you as higher risk."

What would I need to raise this too to rid this negative point?


Thanks

jonesMUFCforever

Pay your bills on time , make sure you are on electoral roll, do not exceed any limit or agreed overdraft - that is the simplest way to better your credit score.

Please take no notice of any Experian or other ''score'' it means nothing to anyone else other than Experian.

Pressleyno1

So what you're saying is that I don't need to increase my £100 limit on my credit card?

Will have an equifax report in the next few days, will be interesting to see where I sit with them. What's the other main credit ref guys?

sfax

The acid test is a real application for credit. Forget the score as that has no bearing on the decision lenders take. My score was 509 with Equifax and after that score, I had 4 new cc applications approved in the following 3 months (3xBT cards and one Amex). Others keep getting rejected for new credit with 999.

Lenders see your report, not your score. Experian, Equifax and CallCredit are the main CRAs

Re. limit, you might argue that a self-imposed £100 limit made you a higher risk...

Pressleyno1

I never self imposed at £100 because of risk. I just don't like credit card spending and the only reason for getting it was to "repair credit rating"

What are the decisive factors within the actual report lenders look for?

UPDATE: Went to increase limit to £1k, they gave me £600.00

YorkshireBoy

Pressleyno1 wrote: »

What would I need to raise this too to rid this negative point?

That depends!

What's your income?
Other financial commitments?
Bank account overdraft limit, and general usage?

sfax

Pressleyno1 wrote: »

I never self imposed at £100 because of risk. I just don't like credit card spending and the only reason for getting it was to "repair credit rating"

It doesn't matter what your intentions were; it's how it's perceived by a potential lender. What they may see is another lender only offering you this £100 limit and think there is a different reason

BugsyBrowne

Pressleyno1 wrote: »

Evening all,

I have had a poor credit past however I have just looked at my Experian report.

I'm currently within the excellent bracket on score of 963.

One of the negative points is my low - self imposed - credit limit on my credit card which I set at £100.

This is a negative as "Your current limits on credit and store cards show the amounts that lenders have previously entrusted you with. Having a low highest limit shows that lenders may view you as higher risk."

What would I need to raise this too to rid this negative point?


Thanks

Of late a score of 963 on Experian would defiantly mean theirs some adverse date on your credit report like discharged bankruptcy or defaults or CC'js from 3 or 4 year back.

udydudy

Pressleyno1 wrote: »

I never self imposed at £100 because of risk. I just don't like credit card spending and the only reason for getting it was to "repair credit rating"

What are the decisive factors within the actual report lenders look for?

UPDATE: Went to increase limit to £1k, they gave me £600.00

The highlighted part of your post is what I get to hear from quite a few people. Its not irresponsible as such by itself but looking at it from the lenders point of view it means one of 2 things (a) your current lender does not trust you with their money hence low limit or (b) your low limit means they do not know how good you are at managing larger sums of borrowings.

The best way is to keep asking your current lender to increase that limit. once it goes above approx £1500-2000 other lenders will see you in better light. forget the scores that credit agencies give, that is meant to increase their revenues and "give you an idea of your standing as per them" your current lender will only increase limits once every 3-6 months depending on lender. I think barclays do it every 3-4 months on request.

Also the way to ensure your lender will increase your limit higher is to spend on it. By spending it does not mean go and splurge on things you would not do like a extra drink/shopping coz the limits there.

You just spend everything that you currently spend in a month by way of cash or direct debits on to your credit card and arrange to pay that amount in full on the payment due date by direct debit.

So if you currently spend £250 by cash and £300 by direct debit(electricity, water bills, council tax, mobile bill, etc) you start spending by credit card and then pay the £550 from your bank account by direct debit.

You will be surprised!! in a year your credit limit will be high(on request) provided like the other poster said, pay on time(best is DD); do not cross your credit limit; do not take cash out on your credot card; do not miss payments on any other bills(mobile,etc). So as long as your credit file stays clean and they see you are good at managing your money, as a general rule they will increase it. Remember they want your business and as long as they make money they want you to spend more on their card.

Sorry for the long long post....:eek: