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current thinking on auto-limit increase

cgk1
cgk1 Posts: 1,300 Forumite
Tenth Anniversary 1,000 Posts Combo Breaker
What is the current thinking on automatic credit card limit increases?

A friend has just had a letter saying his limit is increasing from £6000 to £8000 - he has a balance of about £1500 which he plans to clear within three months (he's being paying off at £600 a month) - he asked me if he should decline as it might have impact on credit score.

However I've heard so many different things about this I'm not sure what to say to him?

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Depends on total debt, total limits and income ratios.

    But on the face of it seems like he has a reasonable amount of available credit for emergencies, so all things being equal, he may want to decline it.
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