Credit Limit increase

raykau

Hello All
I have a question and would be grateful to have some advice on this.

I am currently using 39% of my credit limit and am thinking of requesting an increase on my credit limit.

This is not to spend more but to just to reduce the utilization (obviously I am paying off as well) but also Increase the credit limit to show the max credit limit i can be eligible for as I am planning to get a house mortgage within the next year.

Do you think this will hurt my current credit rating or will it be good in the longer run.

Any advice on this will be much appreciated.

Many Thanks in advance.

matttye

I think it will benefit you so long as the mortgage lender doesn't think you have too much available credit when you apply for the mortgage. You may wish to reduce the credit limit(s) a few months before your mortgage application if they have become high.

Tixy

Are you doing it only with a view to it helping with a mortgage application next year?
I'd be very surprised if increasing your limit would help your mortgage application at all.

Hazzinho

It'll make no difference, debt to salary is what you need to focus on, credit utilisation shouldn't be an issue when applying for a mortgage.

raykau

Thanks a lot for you replies... Yes that was the plan as i thought if i had a high credit limit and do not use it this will help me secure a mortgage more easily but obviously that is not the case... So is there any advantage of having a high credit limit?

Thrugelmir

raykau wrote: »

So is there any advantage of having a high credit limit?

Set your credit limit to suit your personal circumstances.

There's nothing to be gained from having open credit lines, when applying for yet more credit.