Good to aim for credit limit increases?

grandplonker

Is it wise long term to aim for the highest credit limit I can get?

I have two credit cards, collective limit is £3,000. One gets paid off every month. The other is a 0% purchase card I use to spread purchases of ~£500 over 2-4 months. I never use more than 40% of either. One card increased my limit already this year. The other told me I have to wait until I have it for a year.

I'm trying to develop the best credit rating I can. Will it be easier to take out a mortgage in a few years with a collective limit of, say, £6,000 instead of £3,000? Should I persist, in every six months asking for limit increases?

I know universal ratings don't exist, however best practise does.

grumbler

grandplonker wrote: »

I'm trying to develop the best credit rating I can. Will it be easier to take out a mortgage in a few years with a collective limit of, say, £6,000 instead of £3,000?

I don't think so as generally any big credit already available can work against you.

HappyMJ

grandplonker wrote: »

Is it wise long term to aim for the highest credit limit I can get?

I have two credit cards, collective limit is £3,000. One gets paid off every month. The other is a 0% purchase card I use to spread purchases of ~£500 over 2-4 months. I never use more than 40% of either. One card increased my limit already this year. The other told me I have to wait until I have it for a year.

I'm trying to develop the best credit rating I can. Will it be easier to take out a mortgage in a few years with a collective limit of, say, £6,000 instead of £3,000? Should I persist, in every six months asking for limit increases?

I know universal ratings don't exist, however best practise does.

I wouldn't have thought the limit makes any difference. Making only the minimum repayments on a 0% purchases card seems to have made a detrimental effect on my credit rating....not sure long that will last.

justjohn

unsure how it works but I have a few cards with limits of 5k-16k

just noticed you were talking about collective limit....at a guess I have around 40k and have about 8 cards

grandplonker

John, just to clarify my object here is to look as smart is possible to future lenders, shave quarter percents and miniature fractions off whichever mortgage I obtain anytime up to 2019 - 6 year period they stay on my file.

It isn't any of my business why you have eight cards but I am not trying to make a full set of 56 playing cards out of credit cards. If I were, then the Spades could be balance transfer, the Hearts can be cashback cards, and so on.

No but seriously, I'd rather have higher limits on a few cards than many cards with low limits. I have logical reasons for every financial instrument in my possession. When one is released for increased muscle tone, I'll apply.

However it's been good to hear the sort of high limits that can be given.