Credit Newbie seeking advice on credit limits...

scot25

Hi guys, i want to ask your advice...

I currently have a HSBC flexiloan with £2000 available for use.

However if i use that money for any purpose i incur daily interest so it is not totally interest-free. There is a small charge (but still a charge) until i pay it back into the "pot".


Now i have excellent credit rating (score 980+ dark green) so i recently applied for a Credit Card with Virgin (just before they withdrew the offer i think), giving me 0% interest for 18 months i believe, so that is excellent for my use but the problem is i was only offered credit of £700. I would like to eventually increase this to £2000 so it can replace my flexiloan.


Now what i am wondering is...

1) How to increase my credit limit from £700 to £2000 over the next 12 months or so.

I have £700 available, should i utilize 20% of it each month (and pay it back) or 50% or 90% ? In order to show that i am a reliable and responsible borrower?



Also do you think i should apply for another card and hope to build up £2000 available credit that way (i.e. £1000 on each card) that may be easier, and towards that goal... do you think i should cancel my HSBC flexiloan because when lenders look at my profile they see "£2000 AVAILABLE CREDIT" already so maybe thats why they are lending me such a small amount ?

Thanks so much for reading, and i apologize if this has been asked before, im just a newbie trying to find his way in the complicated world of credit !

[Deleted User]

The only way your going to increase your credit limit is by applying for credit limit increases.

However...

Credit Score means squat, I have had a score of 999 and have been refused credit before. So ignore that.

If this is your first credit card, then you will have to build up your credit, and that basically means you have to build up trust with the banks. A £700 limit means the bank trust you a little but not a lot, purchase items on the CC and pay the full amount off each month to build up that trust.

I very much doubt you will go from £700 to £2000 quickly but you never know. Most credit cards will only allow one limit uplift per 6 months, so if you only go up a few hundred quid a time it may take you a while. I don't suggest you open up another card yet, if your only getting a small limit and you start trying to open up more lines of credit you may come across as someone to desperate to get credit, and that generally isn't a good sign.


I know not the best answer but building up credit takes time, £2000 may seem small but it isn't. Also you have to take into account your salary, how long in current job role. Say small/not long, the bank isn't going to risk a large limit. Your credit card will probably have a review period on it and this will be the time you may have the option to increase the credit limit.

HTH

[Deleted User]

Don't worry about percentages... Just use the card for your normal spending and pay it off in full each month. After a few months they may give you an increase without your having to ask. If they don't then ring them and ask - might take six months.