What limit to ask for? HELP!!

waterbaby

I don't think utilisation affects it much.

Halifax started me on £1000, and I spent about £300 each month. Over the next 2 or three years, they wrote to me every 6 months to tell me they were increasing my credit limit, despite me never increasing my spending.

What they want is for you to pay them lots of interest, so I would expect them to give you as much as they felt that you could handle, in the hope that you will pay them lots of interest on it.

THE_ROCK84

ok, i understand, I use you this account for everything, purchases, cash advances, balance transfers, even the cheques! (only pay about £14 in interest and fees so dont really care because the balance is always paid off) is that likely to help me get the limit i want?

waterbaby

The fact that you pay the balance off in full each month will look good.

But as Almahadeus says, the key factors are things like your income, whether you are a homeowner, and your repayment record.

I don't think that using up all of the available balance each month is likely to make a difference. Their concern is whether you are 'worthy' of the credit level, not how much you need or want it.

THE_ROCK84

what do you mean "worthy"??

THE_ROCK84

I have a good repayment history, 4 missed last year by 1 month :beer:

jhow

If you are paying it off in full they dont make any money out of you, and this means you are a less attractive customer, they give you a better credit rating if you dont pay it all off every month. Owing them builds up your credit rating. You could apply for another card elsewhere then threaten to take your business there- take some of it there anyway.

THE_ROCK84

lol i get that but dont creditor wanna at least feel like they gonna get there money back, if i have a 500 limit and take 3 years paying it back, why should they trust me with a 1000? :eek:

THE_ROCK84

So basicly take a cash advance will make me a more PROFITABLE customer, am i correct?

waterbaby

When I say 'worthy', I mean whether you have enough income and/or assets to be able to repay the money they are lending you, and if you pay on time without the lender needing to chase you.

If you take 3 years to pay back 500, they will think that is great, (as long as you pay the minimum each month), because you will be paying stacks of interest.

I really think that you should just go ahead and ask for the limit that you want. The worse that will happen is that they will say no, and then you can ask what they are prepared to allow.

smartsaver

THE_ROCK84 wrote:

I have a good repayment history, 4 missed last year by 1 month :beer:

Hi

Not sure what you mean by this? Are you saying you missed four credit card payments in a year? Even if they were just paid late this could seriously damage your credt rating.